Zee-Sony merger in final stages of stitching up, says Punit Goenka

The merger talks between Zee Entertainment Enterprises and Sony Pictures are in final stages of stitching up, said Punit Goenka, MD and CEO of Zee Entertainment Enterprises at an event in Delhi on Tuesday.

Both companies had announced a merger in September of their India businesses with Sony holding the majority stake.

"I certainly believe that consolidation is going to benefit the industry overall. Zee and Sony will form the largest media entertainment player in the country. Our revenues on a standalone basis will be close to $2 billion, and the capital growth that Sony is going to infuse in the merge entity will really give us the opportunity to invest in premium content including sports," Goenka said at the APOS India Summit.

About 53% of the merged entity would be owned by Sony and the rest by Zee’s holders, according to the non-binding agreement signed in September.

The new shareholder will inject capital so that it will have about $1.58 billion of funds at closing, and Sony would nominate a majority of the board.

India’s largest publicly traded entertainment network has been at the centre of a complicated boardroom and courtroom feud of Goenka and his supporters versus Atlanta-based Invesco Developing Markets Fund, Zee’s biggest shareholder with an 18% stake.