Zee Entertainment has signed a merger agreement with Sony Pictures India Pvt Ltd. The company has given this information in the exchange filing. As per the deal, Sony Pictures Entertainment will invest $1.575 billion in the merged company.
The deal has been approved in the board meeting held on 22 September 2021. Under this deal, the company and Sony India will merge. The company has also said that Punin Goenka will be the MD and CEO of the company after the merger for the next five years. Sony Group will have the right to nominate a majority director in the merged company.
The promoters of Sony India will also infuse growth capital in the company as part of the merger agreement. Zee Entertainment’s shareholders will hold 47.07 per cent stake in the merged company. At the same time, Sony Pictures Networks will have 52.93 percent stake in the merged company.
Under the agreement, both Zee Entertainment and Sony Pictures will merge their respective liner networks, digital assets, production businesses and program libraries. There is also a provision in this agreement for the merger that the promoters family will have complete freedom to increase their stake in the company from the current 4 per cent to 20 per cent.