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

Sony Photos Networks India on Wednesday mentioned it has agreed to accumulate Zee Leisure which, if the deal goes by way of, will deliver 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 property.

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

Sony mentioned it desires to accumulate 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 a number of other regional languages. Operates TV channels. Tie-up with a number of international 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 companies acquire market share in a rustic the place the tv panorama has modified considerably over the previous 20 years – because of the appearance of latest gamers and dramatically quicker Web adoption.

Each Zee and Sony have been essential 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 companies 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 energetic customers – though there may be prone to be appreciable overlap between their person bases.

Each companies mentioned 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 mentioned that the proposed merged entity might be headed by Zee’s present chief government Punit Goenka (pictured above). A number of Zee shareholders have known as for the sacking of Goenka and different prime 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 might be a publicly listed firm in India and higher positioned to guide the patron transition from conventional pay TV to a digital future,” Sony Photos Networks India mentioned in an announcement. “The merger of ZEEL and SPNI will deliver 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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