Zee Sony $10-billion merger to create India’s largest media conglomerate

December 21, 2023 was supposed to be the cut-off date for concluding the Zee-Sony $10-billion merger. However, just four days before the date, Zee sought an extension and now the two parties have agreed to enter into ‘good faith negotiations’ to discuss the possible extension. This is just the latest in a two-year-long saga that has seen several hurdles.

The merger is expected to create the largest media conglomerate in the country, commanding a market share of over 28 per cent, and is supposed to bring 75 channels, two video streaming services (Zee5 and Sony LIV) and two film studios (Zee Studios and Sony Pictures Films India) under a single umbrella. After the merger, Sony will indirectly hold a majority of 50.86 per cent of the new entity, while the founders of ZEEL will hold 3.99 per cent. Other ZEEL shareholders will hold a 45.15 per cent stake.

We look back on all that has transpired in the last two years.

September 21, 2021: The board of directors of ZEE Entertainment Enterprises (ZEEL) unanimously gave an in-principle approval for the merger between Sony Pictures Networks India (SPNI) and ZEEL.

December 21, 2021: After the completion of the 90-day due diligence period, the board of directors approved the merger of ZEEL and Bangla Entertainment, an affiliate of Culver Max Entertainment (formerly known as Sony Pictures Networks India), in Culver Max Entertainment.

February 2022: On February 4 private sector lender IndusInd Bank filed a plea before the National Company Law Tribunal (NCLT) to initiate insolvency proceedings against ZEEL. It claimed a default of Rs 83.08 crore. On February 21, ZEEL moved an application before the NCLT requesting the dismissal of the plea.

July 29, 2022: The merger received approval from stock exchanges BSE and NSE.

October 4, 2022: The Competition Commission of India (CCI) gave its approval to the merger subject to certain “voluntary structural remedies” proposed by the parties.

December 2022: IDBI Bank moved the NCLT against ZEEL seeking an insolvency proceeding against the media firm to recover dues of Rs 149.60 crore. Afaqs