Sony Pictures, Zee Entertainment initiate merger talks

Sony to have majority control, Zee’s Punit Goenka to lead the new entity

Sony Pictures Networks India (SPNI) and Zee Entertainment Enterprises Ltd. (ZEEL) on Wednesday said they had entered into an exclusive, non-binding Term Sheet to combine both companies’ linear networks, digital assets, production operations and programme libraries.

The non-binding Term Sheet provides an exclusive negotiation period of 90 days during which ZEEL and SPNI will conduct mutual diligence and negotiate definitive, binding agreements.

The combined company would be a publicly listed company in India. They said the combined entity would be better positioned to lead the consumer transition from traditional pay TV into the digital future.