Under its objective to achieve better growth and profitability as a major media and entertainment firm in South Asia, Zee Entertainment Enterprises' board has authorized the company's merger with Sony Pictures Networks India. Sony will make a $1.57 billion investment and hold a 52.93 percent controlling ownership in the combined company after the merger. The Zee Entertainment Enterprises’ stockholders would own 47.07 percent of Zee Entertainment Enterprises Limited.
It stipulates that the partners will perform due diligence on each other and negotiate legally enforceable agreements during the exclusive 90-day negotiation period specified in the term sheet. The merged firm will likely be listed on the Indian stock exchanges. CEO Punit Goenka, who now runs Zee Entertainment, will take the helm of the new organization. Directors selected by Sony Group would sit on the merged company's board, giving Sony Group the power to nominate the vast majority of the combined board's members. Zee and Sony India have agreed to merge their linear networks, digital assets, production operations, and program libraries in a non-binding term sheet signed today.