One of the biggest media companies in the country, Zee Entertainment has joined hands with Sony Pictures Networks India Private Limited. The two have signed a merger deal according to an administrative filing by the media company to the stock exchanges today (September 22).

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Zee Entertainment’s board of directors collectively supported the merger between Sony Pictures Networks India and Zee Entertainment Enterprises Limited (ZEEL), in a board meeting that took place today. Mr Punit Goenka, Chief Executive Officer of Zee Entertainment,  will continue to be the Managing Director (MD) and CEO of the merged entity. The promoters at Sony India will have the liberty to designate the majority of directors to the merged company.

According to the statement, Zee Entertainment will hold 47.07 per cent of the stajes, while Sony India will hold a majority stake of 52.93 per cent. The preponderance of the board of directors of the merged entity will be nominated by Sony as well. Both the firms have agreed to a obligatory exclusivity for a period of 90 days – during which conclusive agreements will be transferred and finalised. The merged company will be a publicly listed company.

”ZEEL continues to chart a strong growth trajectory and the Board firmly believes that this merger will further benefit ZEEL. The value of the merged entity and the immense synergies drawn between both the conglomerates will not only boost business growth but will also enable shareholders to benefit from its future successes,” said Mr. R. Gopalan, Chairman, Zee Entertainment.

“As per legal and regulatory guidelines, at the required stage, the proposal will be presented to the esteemed shareholders of ZEEL for their approval,” added Mr Gopalan.