Sony Group entity seeks to amass India’s Zee Leisure, invests extra $1.57 billion – TechCrunch

Sony Photos Networks India on Wednesday stated it has agreed to amass Zee Leisure which, if the deal goes via, will convey collectively two of the most important broadcasting giants in India which are concerned in main cable tv networks, streaming providers, music Label and run personal scores. different digital belongings.

The Japanese conglomerate’s subsidiary stated it can make investments $1.575 billion in Zee Leisure, a 30-year-old agency grappling with inner governance points.

Sony stated it desires to amass a 53% stake in publicly listed Zee Leisure, however didn’t disclose how a lot it plans to spend on shopping for Zee, which has greater than 5 dozen languages ​​in English, Hindi and several other regional languages. Operates TV channels. Tie-up with a number of world studios for broadcasting and streaming their library in India. Equally, Sony Photos Networks India operates over two dozen TV channels within the South Asian market.

The merger will assist the 2 corporations acquire market share in a rustic the place the tv panorama has modified considerably over the previous twenty years – because of the appearance of recent gamers and dramatically quicker Web adoption.

Each Zee and Sony have been necessary fixtures within the Indian TV business for the previous 25 years. Sony launched Sony Leisure Tv in India in 1995 and aired a number of the most memorable reveals together with “Indian Idol” and “Kaun Banega Crorepati”, which have been “Who Desires to Be a Millionaire?” Official Hindi model of

The corporations additionally function on-demand streaming providers like Zee5 and SonyLiv that compete with dozens of different gamers, together with Netflix, Amazon Prime Video and Disney’s Hotstar. Each Zee5 and SonyLiv collectively amassed over 150 million month-to-month lively customers – though there’s prone to be appreciable overlap between their consumer bases.

Each corporations stated they might do due diligence and finalize a definitive settlement within the subsequent 90 days. Analysts say Zee will want majority approval from its shareholders to finish the deal.

In a submitting to BSE, publicly listed Zee Leisure stated that the proposed merged entity can be headed by Zee’s present chief govt Punit Goenka (pictured above). A number of Zee shareholders have referred to as for the sacking of Goenka and different high executives in current days.

Zee shares rose 35% on the information on Wednesday, giving it a market worth of $4.5 billion.

“The mixed firm can be a publicly listed firm in India and higher positioned to steer the buyer transition from conventional pay TV to a digital future,” Sony Photos Networks India stated in a press release. “The merger of ZEEL and SPNI will convey collectively two main Indian media community companies, benefiting customers throughout India throughout all content material genres from movie to sports activities.”

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