Today, Zee Entertainment Enterprises Limited (ZEEL) announced that it will be merging with Sony Pictures Networks India (SPNI). This step will combine both the companies’ linear networks, digital assets, production operations, and program libraries.

Sources claimed that the merger has been approved by the ZEEL board, and Punit Goenka will remain the Managing Director and CEO of the merged entity. After the merger, Sony will invest $1.57 billion and will be the majority shareholder with a 52.93 percent controlling stake. The shareholders of ZEEL, meanwhile, will hold a 47.07 percent stake.

Commenting on the merge, SPNI stated that the non-binding pact to combine both companies’ assets will enhance the combined company’s digital platforms across technology and content. On the other hand, ZEEL stated that it not only evaluated financial parameters but also the strategic value.

The term sheet gives a period of 90 days, during which both firms will conduct mutual diligence and finalize definitive agreements. In addition, the merged entity will still be a listed company in India.

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