Indian Zee Entertainment Enterprises Limited, on Wednesday announced its merger with Sony Picture Networks India, making it one of the largest entertainment networks in the country.
The board made the announcement in a statement attached to a notice on the Bombay Stock Exchange.
Sony and Zee together run about 75 television channels and digital media platforms in India, some of which are beamed globally.
Sony Picture Networks India is a subsidiary of Japan’s Sony Corporation.
Zee said Sony will invest 1.57 billion dollars in the merged entity and will be the majority stakeholder with a 52.93 per cent stake.
Zee Managing Director, Punit Goenka would retain the position in the merged entity, and it would hold 47.07 per cent stake.
The statement said the two companies will combine their linear networks, digital assets, production operations and programme libraries.
It added that Zee’s expertise developed over three decades and Sony’s success in the entertainment, gaming and sports genres would give significant value to the merged entity.
The two firms plan to conduct due diligence and obtain the required regulatory approvals for the merger over the next three months.
The new entity is expected to be publicly listed in India.