ZEEL-Sony Pictures: Mega-merger deal will create close to $2 billion in revenue, says MD & CEO Punit Goenka

The ZEE Entertainment Enterprises Limited (ZEEL) Board of Directors, present and voting at its board meeting on September 21, 2021, unanimously approved the merger between Sony Pictures Networks India (SPNI) and ZEEL. 

The Board considered not just the financial aspects of the partnership, but also the strategic value it brings to the table.

The Board came to the conclusion that the merger would benefit all shareholders and stakeholders. 

Punit Goenka will continue as the Managing Director (MD) and Chief Executive Officer (CEO) after the merger of Zee Entertainment and Sony Pictures India.  

Also read: ZEEL board gives go-ahead for merger with Sony Pictures Networks India

Talking about the mega-merger deal, Goenka said: “The mega-merger between ZEE Entertainment Enterprises Limited and Sony Pictures Networks India will create the largest media and entertainment company in India. The merger will create close to $2 billion in revenue.”  

He also stated that the combined business will be valued at $1.6 billion in cash. In the mega-merger, ZEEL will own 47 percent of the company. There will also be a non-binding term sheet with a 90-day mutual diligence period.”

Sony will have the opportunity to designate new promoters to the board, according to Goenka. The new board of the amalgamated firm will decide on fund infusion avenues.” 

He also asserted that the overlaps are largely in the Hindi GEC space. However, the objective is to maximise viewership. The MD also mentioned that no open offer is required in a merger.  

Goenka further added that the channel rationalisation call will be taken by the board of the merged entity. Similarly, the capital allocation strategy will also be taken by the board.   

He mentioned that “We will first optimise revenue from the merged entity and then cost.”

(Disclaimer: Zee Entertainment is not our sister concern/ group company. Though our names sound similar, but our company is owned by Zee Media Corporation, which is a different group)