Sony Pictures Networks India has proposed a deal to take control of Zee Entertainment, India’s largest listed media company, whose founding family is resisting a rare revolt by foreign shareholders.
If the deal proceeds, it would create one of India’s biggest media conglomerates, with dozens of channels encompassing Sony’s popular sports networks and Zee’s popular Hindi language news and entertainment channels, in addition to streaming services and film studios.
The companies said they had agreed to a non-binding term sheet for a merger that would involve Sony investing almost US$1.6 billion and taking a 53% stake in the combined entity. The companies have 90 days to conduct due diligence and finalize the deal. Zee’s Mumbai-listed shares surged 24% on Wednesday, September 22, after the deal was announced.
News of the merger came days after Zee’s biggest shareholder, US investment group Invesco, launched an effort to overhaul the board and oust chief executive Punit Goenka, the son of founder Subhash Chandra, amid dissatisfaction with the media group’s performance and corporate governance.
The Sony deal would allow Goenka to retain his role at the new entity, though Sony would nominate the majority of board directors.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
FTC Urged to Enforce Rarely Used Antitrust Law Against Retail Giants
Mar 28, 2024 by
CPI
UK’s Fingleton Bolsters Team with New Additions
Mar 28, 2024 by
CPI
Britain’s Competition Regulator Clears Aviva’s Acquisition of AIG Life UK
Mar 28, 2024 by
CPI
White House Implements New AI Safeguards to Protect Rights and Safety
Mar 28, 2024 by
CPI
Denver Court Sets August Date for Kroger-Albertsons Merger Showdown
Mar 28, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Real Estate & Antitrust
Mar 27, 2024 by
CPI
Systematic National Evidence of Steering by Real Estate Agents
Mar 27, 2024 by
CPI
Compliance Now! Actionable Antitrust Advice for the Residential Real Estate Industry
Mar 27, 2024 by
CPI
Real Estate Commissions: Some Insights from the Economics of Multi-Sided Platforms
Mar 27, 2024 by
CPI
New Ideas for Promoting Real Estate Brokerage Price Competition
Mar 27, 2024 by
CPI