Sony Pictures Networks India (SPNI) and Zee Entertainment Enterprises are finalizing a merger that would create a giant combined entity in the Indian broadcasting scene.
The two parties have entered into an exclusive, non-binding term sheet to merge both companies’ linear networks, digital assets, production operations and program libraries. SPNI will hold a majority stake in the combined entity, with ZEEL Managing Director & CEO Punit Goenka set to lead the merged company.
The new company will be publicly listed, as Zee is now. The move will leave both parties better suited to lead the consumer transition from traditional pay TV into the digital future, they said.
SPNI will invest growth capital of USD $1.6BN at closing to enhance the combined company’s digital platforms across technology and content, also giving it the finance to also bid for major sports rights.
There will now be 90 days for mutual diligence and to create negotiate definitive agreements. The deal will need regulatory third-party approvals to clear.