Sony Pictures Networks India (SPNI) intends to take control of Zee Entertainment in a deal to combine their digital assets, content and production in a listed company in India. Sony Pictures Entertainment, parent of SPNI, would invest some $1.5bn to improve the newco’s digital platforms, invest for growth and to bid for sports TV rights. This would give Sony Pictures Entertainment a majority share of the company.
SPNI brings TV channels, on demand and production services while Zee Entertainment has broadcasting along with film, music, events and a huge Hindi content library. The combined company would be a major player within the Indian TV market which is experiencing high growth and change as improved broadband provision facilitates expansion of streaming services.
The potential deal comes shortly after an attempt by Invesco, Zee Entertainments biggest shareholder, to oust the CEO in protest at perceived poor performance. Punit Goenka, the son of Zee founder Subhash Chandra, would maintain his position under the terms of the Sony deal which is subject to regulatory and shareholder approval.
