Sony Pictures Networks India has finalized a deal with local rival Zee Entertainment to merge their television channels, film assets and streaming platforms, after the Competition Commission of India approved the deal with certain conditions. “The Commission approves amalgamation of Zee Entertainment Enterprises Limited (ZEE) and Bangla Entertainment Private Limited (BEPL) with Culver Max Entertainment Private Limited (CME), with certain modifications,” the CCI said in a statement.
According to The Times of India, sources close to the development said the approval was given after the regulator accepted the voluntary remedies proposed by the parties, although specific details were not disclosed. “The Commission approved the proposed combination subject to the carrying out of modifications proposed by the parties, under Regulation 25 of the Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011,” the statement adds.
The combined entity, which will be nearly 51% owned by Sony Pictures Networks India (SPNI) and 3.99% by Zee's founders, will feature popular channels such as Sony MAX and Zee TV, and streaming platforms like ZEE5 and SonyLIV. Furthermore, SPNI will have a cash balance of US$1.5 billion at deal close, including an infusion by its own shareholders and the promoters of Zee, the companies said.
Punit Goenka,Chief Executive Officer of Zee Entertainment Enterprises, will be named CEO and Managing Director of the merged entity, which will be publicly listed in India. Most of the combined company's board will be nominated by the Sony Group, and includes current SPNI's CEO, N.P. Singh, as Chairman of Sony Pictures India, a division of SPNI parent Sony Pictures Entertainment (SPE).
The announcement follows a 90-day due diligence period that closed on December 2021, and while the parties have signed definitive agreements, deal close is subject to certain regulatory approvals.
Related News
