Merger with ZEEL to take a few more months: Sony
Issuing a statement, Japan’s Sony Group said the transaction was expected to be completed by the end of the first half of fiscal year 2023
The merger between Sony Pictures Networks India and Zee Entertainment Enterprises is expected to be delayed, said Sony Group in a statement.
"This transaction was expected to be completed by the end of the first half of fiscal year 2023, but based on the current state of preparation, we expect completion within the next few months," Sony said in a statement.
The merger process was originally supposed to be completed by the end of September 2023, but the deadline has now been extended due to legal complexities involving Zee.
The journey of the merger began in December 2021 with ZEEL’s Board of Directors considering and approving the Scheme of Arrangement under Sections 230 to 232 of the Companies Act, 2013 (Scheme), whereby the Company and Bangla Entertainment Private Limited, an affiliate of Culver Max Entertainment Pvt Ltd (formerly known as Sony Pictures Networks India Private Limited), shall merge in Culver Max Entertainment Pvt Ltd.
However, the merger process soon got into trouble after several ZEEL lenders raised objections.
On August 10, dismissing all objections raised by the lenders, the National Company Law Tribunal (NCLT) approved the merger.
Sharing this information with BSE, ZEEL had then said, “We wish to inform you that the National Company Law Tribunal, Mumbai Bench, has approved the composite scheme of arrangement amongst Zee Entertainment Enterprises Limited, Bangla Entertainment Private Limited and Culver Max Entertainment Private Limited (formerly known as Sony Pictures Networks India Private Limited). The final order copy is awaited. This is for your information and records.”
According to industry experts, the merged companies will own over 70 TV channels, two video streaming platforms – ZEE5 and Sony LIV – and film studios – ZEE Studios and Sony Pictures Films India – with a market share of 26%.
With this merger, ZEE and Sony will have an audience of over 700 million people in its television and digital verticals, which will enhance their market presence and give them a bigger slice of the advertising pie.