Zee Entertainment Enterprises and Sony Pictures Networks India are set to merge creating a new content powerhouse in India.
The companies announced on Wednesday that they have entered exclusive merger talks that will combine both their linear networks, digital assets, production operations and program libraries.
The deal brings together Zee’s strength in linear television, as well as its interests in print, internet, film production, mobile content and its 4,800 film library that will combine with SPNI’s film and television production and its entertainment and sports television networks.
The proposed merged entity will be lead by current Zee CEO Punit Goenka. Sony Pictures Entertainment, the parent company of SPNI, will hold a majority stake in the combined company.
The combined company’s board of directors would include directors nominated by Sony Group, with the group having the right to nominate the majority of the board members.
Sony Pictures Entertainment will inject capital into SPNI, approximately $1.575 billion, as part of the growth plan for the new entity that includes building out its digital platforms and bidding for sports rights.
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