Merger with Zee will bring together strongest leadership teams in media business: Sony Pictures

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Sony Pictures in a statement said that the merger of ZEEL and SPNI will bring together the strongest leadership teams, content creators, and high-quality series and film libraries in the media business.

"The new entity will create a combined content platform that can compete with domestic and global platforms and accelerate that region’s transition to digital," said Ravi Ahuja, Chairman, Global Television Studios and Sony Pictures Entertainment Corporate Development.

Read | Zee Entertainment signs merger deal with Sony Pictures India

In a statement, Ahuja said that agreement with ZEE would not have been possible if not for the strength and market prominence of SPNI, and the outstanding leadership of NP Singh, SPNI’s MD and CEO.

"NP Singh has been with SPNI for over 20 years and has worked tirelessly with his excellent teams to build SPNI into what it is today. We expect that NP will hold a leadership role on its board of directors," Ahuja said.

Sony Pictures is committed to investing in India and would hold a majority stake in the merged company, he said, adding that both companies are in the early stages of the agreement and will conduct "due diligence and negotiate terms in the next 90 days".

"There’s obviously a long way to go on this, but we are excited to pursue this amazing opportunity," he added.

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Zee Entertainment on September 22 announced that it has signed a merger deal with Sony Pictures Networks India Private Limited.

According to the deal, Sony Pictures Entertainment will infuse USD 1.575 billion in the merged entity.

Read | Like father, unlike son: Punit Goenka’s bumpy ride at the Zee Group

Post the merger, 47.07 percent stake will be held by shareholders of Zee Entertainment, while Sony Pictures Networks will hold a 52.93 percent stake in the merged entity.

ZEE said that Punit Goenka will be MD & CEO of the merged company for 5 years.

Also read | Zee-Sony merger to create largest entertainment network in India with 26% viewership share

As a part of the transaction, ZEEL & SPNI will combine both companies' linear networks, digital assets, production operations and program libraries.

According to the term sheet, the ZEE promoter family is free to increase its shareholding from the current 4 percent to up to 20 percent, the firm said.