Television

Zee-Sony entity to generate close to $2 billion in revenue

The merged entity will target overall growth with a focus on sports and digital.

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2021/09/23/photogrid_plus_1632375747735.jpg?itok=JKkhwrdv

Mumbai: Zee Entertainment Enterprises Ltd (Zeel) on 22 September announced its plans for a merger with Sony Pictures Networks India (SPNI). The merged entity will be the largest media and entertainment player in India with a scale close to $ two billion in revenue.

In an investor call on Wednesday, Punit Goenka, who has been proposed as the managing director and chief executive officer of the merged entity for a period of five years, stated that “the primary objective will be growth for the company overall. Whether that will be for the digital or sports business that the new board of the merged company will decide,” according to a report by Moneycontrol.

The merger was unanimously approved by the Zeel Board in a meeting held on Tuesday, where it evaluated the agreement on the financial parameters as well as the strategic value which SPNI brings to the table.

“Condition for my appointment is the same as what has already been approved by the shareholders. There is no change to that. Any change in remuneration would be subject to board approval,” said Goenka.

The companies have inked a non-binding term sheet that gives them 90 days to conduct mutual due diligence and come to an agreement that will also require shareholder approval. Post that the scheme will be presented to National Company Law Tribunal (NCLT) and Securities and Exchange Board of India (SEBI). Zeel noted that the Competition Commission of India (CCI) approval is also part of the process.

According to Goenka, while CCI norms are different for different sectors, in this scenario, it will be a national-level evaluation and not a state-level evaluation. “The deal has been arrived at with Sony after months of negotiation and preparation. And I think we have a formidable real deal on the table today.”

Sony has agreed to infuse $1.6 billion cash which will enable the merged entity to accelerate its digital platform and significantly invest in premium content including sports. Zeel had sold the Ten Sports franchise to Sony five years ago which will now become a part of the merged entity.

On the matter of channel rationalisation, Goenka said that it will happen at a later date as each channel has its own unique viewership as well as programming. “The focus will be on maximising reach and viewership. Overlaps are there in Hindi-speaking markets of GEC and movies. But the content that exists on the platforms is unique and exclusive. So, the objective will be to maximise viewership and garner revenue rather than shutting down channels," he added.

The company has yet to reach out to shareholders like Invesco and LIC on the proposed transaction with Sony.

In an annual general meeting (AGM) held on September 13, the largest shareholder of Zeel, Invesco Developing Markets Fund and OFI Global China Fund IIC, holding 18 per cent stake in the media company, called an extraordinary general meeting of the shareholders seeking to remove Punit Goenka, the sitting MD, and two more independent directors from the board of the company. The two independent directors Ashok Kurein and Manish Chokhani had submitted their resignations a day prior. The funds sought the appointment of their own six nominees on the board of Zeel.

Zeel’s promoters had pared their stake in the company to four per cent to pay off debt worth Rs 13,000 crore.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/10/21/img_21102021_175043_800_x_800_pixel.png?itok=PNYBKHZz
Zeel-Invesco tussle: Bombay HC directs Zeel to call for EGM

Mumbai: The Bombay high court asked Zee Entertainment Enterprises Ltd (Zeel) to call for the extraordinary general meeting (EGM) requisitioned by Invesco Developing Markets Fund on Thursday. Zeel must inform the court of the EGM date by Friday morning.

Television TV Channels GECs
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/10/21/img_21102021_133722_800_x_800_pixel.jpg?itok=vhRQGg5e
July-Sept TV ad volumes show highest spurt in 2021: Barc

Mumbai: Ad volumes on television continue to post healthy growth, with the July-September quarter registering 461 million seconds of advertising – which is the highest this year, as per Broadcast Audience Research Council (Barc) India’s July-September 2021 Ad Volumes - Special Festival Edition...

Television TV Channels Viewership
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/10/21/anr.jpg?itok=caB18OxN
IN10 Media’s Gubbare supports child education with Smile Foundation

With the education of children impacted by the pandemic, IN10 Media Network’s kids channel Gubbare has joined hands with leading non-government organisation Smile Foundation to support its Shiksha Na Ruke campaign.

Television TV Channels News Broadcasting
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/10/21/book.jpg?itok=gYXUgnGI
Media tome throws light on the biz growth pre and post pandemic

The Indian media business is estimated to be a $19 billion industry in 2021, according to veteran business journalist Vanita Kohli-Khandekar. On 20 October, Khandekar inaugurated the fifth edition of her book ‘The Indian Media Business: Pandemic and After’ published by Sage Publications India at a...

Television TV Channels News Broadcasting
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/10/20/aaj.jpg?itok=aNpt9Gh_
Aaj Tak Bangla's Durga Puja coverage goes beyond food and pandal hopping

Durga Puja is the time of the year that puts Bengal on the global itinerary of culture and festivities. For Bengal, Durga Puja is not just a festival but also a celebration of art, history, heritage, and homecoming.

Television TV Channels Regional
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/10/20/img_20102021_161133_800_x_800_pixel.jpg?itok=avsj-hxA
NTO 2.0: Times Network publishes new RIO

Mumbai: Times Network has published its reference interconnection offer (RIO) issued under telecommunications (broadcasting and cable) services interconnection (addressable systems) regulations, 2017 for all distribution platforms. The new RIO will be effective from 1 December onwards.  The tariffs...

Television TV Channels News Broadcasting
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/10/20/img_20102021_142756_800_x_800_pixel.jpg?itok=Mb5skioU
Red FM launches ‘Totka Chalao, India Ko Jeetao’ campaign for World Cup

Mumbai: Radio and entertainment network 93.5 Red FM has kick-started its World Cup campaign called ‘Totka Chalao, India Ko Jeetao.’ The campaign will be rolled out in 40 key markets across the country. Capturing the passion and craze of fans, Red FM will celebrate the ‘totkas’ and will have RJ’s...

Television TV Channels Music and Youth
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/10/20/img_20102021_141022_800_x_800_pixel.jpg?itok=DAMHQ7Fq
AR Rahman returns as BAFTA Breakthrough India ambassador

Mumbai: The British Academy of Film and Television Arts (BAFTA) has announced AR Rahman as the Breakthrough India ambassador for another year as they invite a new round of applications in India for the programme. Supported by Netflix, this programme will be open for prospective talent across the...

Television TV Channels News Broadcasting
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/10/20/img_20102021_113749_800_x_800_pixel.jpg?itok=_zNg5lCy
TV9 Network appoints Anshuman Tiwari as editor, Money9

Mumbai: TV9 Network has strengthened the leadership of TV9 Digital and appointed Anshuman Tiwari as editor of Money9. Veteran journalist Rakesh Khar will assume a larger role as business and economy editor of the network. Tiwari is a recipient of the Ramnath Goenka Award, the WAN-INFRA...

Television TV Channels People

Sign up for our Newsletter

subscribe for latest stories

* indicates required