<p>Sony’s India unit has sealed the deal with rival Zee Entertainment Enterprises Ltd (ZEEL) to combine their assets, laying the foundation for what analysts said could become India’s largest media entertainment company.</p>.<p>The combined entity – which will include more than 75 television channels, film assets and two streaming services – will help Sony Pictures Networks India Pvt Ltd (SPNI) and Zee compete better against Netflix, Disney and Amazon in the world’s second-most populous country. The deal will also help in boosting Zee’s sports offerings and Sony’s regional clout.</p>.<p>“Sony leads in general entertainment and sports, whereas Zee dominates regional programmes. The merged entity may now focus on improving its content offering, which will boost average revenue per user,” said Likhita Chepa, a senior research analyst at CapitalVia Global Research.</p>.<p><strong>Read | <a href="https://www.deccanherald.com/business/business-news/early-christmas-gift-netflix-slashes-prices-for-monthly-plans-1060587.html" target="_blank">Early Christmas gift: Netflix slashes prices for monthly plans</a></strong></p>.<p>The news came at a time when the founders of Zee are involved in a legal battle with Invesco Developing Markets Fund, its largest shareholder. Zee is India’s largest listed television network.</p>.<p>After the deal closes, Sony will indirectly hold a majority 50.86% of the combined company, Zee founders will hold 3.99%, and the other Zee shareholders will hold a 45.15% stake, the companies said in a joint statement on Wednesday.</p>.<p>SPNI will have a cash balance of $1.5 billion at closing, enabling the combined entity to invest in better content, strengthen its digital platforms, bid for media rights to sports events and pursue other growth opportunities.</p>.<p>Once the deal closes, the combined entity will be publicly listed and led by Zee’s chief executive officer Punit Goenka. The transaction is subject to regulatory, shareholder, and third-party approvals.</p>.<p>Analysts said the deal was beneficial to both parties.</p>.<p>The merged entity would have a viewership share of 26.7% compared with 18.6% for Disney Star, Chepa said, citing data from the Broadcast Audience Research Council. She pointed out Zee’s viewing share in the South Indian market and both firms’ global presence as other benefits of the deal.</p>.<p>“(That) would help them in securing new content deals,” Chepa said.</p>.<p><strong>Watch latest videos by DH here:</strong></p>
<p>Sony’s India unit has sealed the deal with rival Zee Entertainment Enterprises Ltd (ZEEL) to combine their assets, laying the foundation for what analysts said could become India’s largest media entertainment company.</p>.<p>The combined entity – which will include more than 75 television channels, film assets and two streaming services – will help Sony Pictures Networks India Pvt Ltd (SPNI) and Zee compete better against Netflix, Disney and Amazon in the world’s second-most populous country. The deal will also help in boosting Zee’s sports offerings and Sony’s regional clout.</p>.<p>“Sony leads in general entertainment and sports, whereas Zee dominates regional programmes. The merged entity may now focus on improving its content offering, which will boost average revenue per user,” said Likhita Chepa, a senior research analyst at CapitalVia Global Research.</p>.<p><strong>Read | <a href="https://www.deccanherald.com/business/business-news/early-christmas-gift-netflix-slashes-prices-for-monthly-plans-1060587.html" target="_blank">Early Christmas gift: Netflix slashes prices for monthly plans</a></strong></p>.<p>The news came at a time when the founders of Zee are involved in a legal battle with Invesco Developing Markets Fund, its largest shareholder. Zee is India’s largest listed television network.</p>.<p>After the deal closes, Sony will indirectly hold a majority 50.86% of the combined company, Zee founders will hold 3.99%, and the other Zee shareholders will hold a 45.15% stake, the companies said in a joint statement on Wednesday.</p>.<p>SPNI will have a cash balance of $1.5 billion at closing, enabling the combined entity to invest in better content, strengthen its digital platforms, bid for media rights to sports events and pursue other growth opportunities.</p>.<p>Once the deal closes, the combined entity will be publicly listed and led by Zee’s chief executive officer Punit Goenka. The transaction is subject to regulatory, shareholder, and third-party approvals.</p>.<p>Analysts said the deal was beneficial to both parties.</p>.<p>The merged entity would have a viewership share of 26.7% compared with 18.6% for Disney Star, Chepa said, citing data from the Broadcast Audience Research Council. She pointed out Zee’s viewing share in the South Indian market and both firms’ global presence as other benefits of the deal.</p>.<p>“(That) would help them in securing new content deals,” Chepa said.</p>.<p><strong>Watch latest videos by DH here:</strong></p>
