Nearly two years after the deal was first announced, the proposed merger between Zee Entertainment Enterprises Limited and Sony’s TV operations in India has finally been given a green light by the National Company Law Tribunal (NCLT). This will pave the way for the creation of a US$10 billion media company, the biggest in India.
The deal is intended to combine Zee and Sony’s linear TV networks, digital assets, production operations, and program libraries. The merged company would retain Zee’s stock market listing in India, but Sony would provide a large cash injection and control a majority share stake of close to 51%.
The combination plans were first announced in 2021, but has faced several challenges from the Zee side, including objections from shareholders, insolvency proceedings, and a ban on Punit Goenka, Chief Executive Officer of Zee, from holding managerial or directorial positions. Although the NCLT has now dismissed all objections to the merger, it is not clear who will be the Managing Director of the merged entity, as Goenka is still banned from holding such a position.
Zee Entertainment Enterprises Limited's shares jumped 18% on Thursday and closed at their highest level since April 2022, after the group notified local stock exchanges that the National Company Law Tribunal had approved the merger.
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