InvestorQ : What are the broad terms and conditions of the merger of Zee Entertainment and Sony?
sarah Leo made post

What are the broad terms and conditions of the merger of Zee Entertainment and Sony?

Answer
image
Rashi Mehra answered.
2 months ago
Follow

Under the merger deal, Zee Entertainment and Sony Pictures will combine their businesses and libraries into a single entity. In the new entity, Zee gets 47% while Sony Pictures gets 53%. That is because Sony will bring in the much needed $1.5 billion in cash reserves into the merged entity and that is likely to boost the prospects of the company. While Sony is strong in GEC and in sports, Zee has a strong franchise in regional languages that is unique.

Interestingly, just before the merger deal, Invesco and OFI China Fund tried hard for the removal of Punit Goenka from the post of MD and CEO of Zee Entertainment. Punit is the son of Subhash Chandra and they were uncomfortable with the influence of the family with just 3.44% stake in the company. However, now Punit has been appointed CEO of the merged entity for a period of five years. The regulatory approvals are pending.

0 Views