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ZEEL-Sony merger in final stage, new company’s revenue to reach $2 billion: Punit Goenka

Punit Goenka, Managing Director and CEO of Zee Entertainment Enterprises Ltd (ZEEL) has said that the proposed merger with Sony Pictures Networks India has reached the final stage of completion and everything is on track.

In the APOS India Summit, Goenka said that the two companies will form the largest entertainment media player in India.

“ZEE and Sony will form the largest entertainment media player in the country. Our combined revenues on a standalone basis will be around USD 2 billion. Sony will infuse USD 1.575 billion in the merged entity,” he said.

He added that the capital Sony will invest in the post-merger company will give us an opportunity to invest more in premium content including sports.

“We just finished non-compete on sports with Sony and it’s coming full circle,” he said.

He added that the “decisions related to bidding will be taken by the Board of the merged entity, and not by me individually”.

Goenka said that India will continue to be a big market for TV and digital in the near future. Zee as a company will continue to grow its digital presence and simultaneously invest in Linear TV.

“The digital landscape has opened up new opportunities for monetisation which was not there five years ago. Sports will certainly be an area of interest,” he said.

He further added that before the COVID-19 pandemic, no one thought 40-50 million people would pay for digital content. But the sector has seen rapid growth.

Notably, the merger between Zee Entertainment and Sony Pictures Networks India was announced on September 22, 2021. ZEEL-Sony will invest Rs 11,605.94 crore in the company formed after the merger. Punit Goenka will continue to be the Managing Director (MD) and CEO of the merged company. After the merger, Zee Entertainment will hold 47.07 per cent stake while Sony Pictures will hold 52.93 per cent.

The TV business, digital assets, production operations and program library of both the companies are also being merged

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