Sony Pictures acquires major stake in India's Zee Entertainment

Sony Picture Entertainment has announced plans to merge its  linear networks, digital assets, and production operations with India-based Zee Entertainment, and gain access to its programming library after acquiring a major stake in the company. The deal will undergo a 90-day period of due diligence, both companies report. “We have unanimously provided an in-principle approval to the proposal and have advised the management to initiate the due diligence process,” said ZEEL chairman R Gopalan.

Under the deal, Sony has agreed to invest $1.6 billion in hopes of growing its digital platforms, and bid for broadcasting rights in the sports landscape and pursue other growth opportunities. Sony Pictures Entertainment. Current ZEEL managing director and CEO Punit Goenka will lead the combined company with the majority of the board of directors selected by Sony.

By now, Sony has garnered several channels in the region, including Max, specializing in Hindi movies and special event channels, Max 2, showcasing Indian cinema, Max HD, airing premium quality Hindi movie films, and SAB, among various others. With this expansion, the company hopes to strenghten consumers across content genres and undergo a smooth transition from Pay-TV to the digital market. 

Reaching more than 173 countries and 1.3 billion viewers worldwide, Zee has claimed a wide variety of  genres, languages, and platforms, and has even established a presence in the digital space with ZEE5, as well as other live events. Despite receiving requests to resign, CEO Punit Goenka, whose family owns a 4% stake in the company, recently became CEO of the new joint venture, and was also given the option to 

Despite facing calls for his own departure, former CEO Punit Goenka, whose family owns a 4% stake in ZEEL, has been made CEO of the new joint venture with an option to increase his family promotion group’s stake to 20% over time. For now, the other 47.01% of Zeel belongs to the shareholders. “ZEEL continues to chart a strong growth trajectory and the board firmly believes that this merger will further benefit ZEEL. The value of the merged entity and the immense synergies drawn between both the conglomerates will not only boost business growth but will also enable shareholders to benefit from its future successes.”