Zee-Sony Merger May Turn Into A Major Revenue Churner, Say Experts
NDTV
A merger of Zee and a domestic unit of Japan's Sony Group Corp will create a television powerhouse to grab more advertising revenue.
A merger of Zee and a domestic unit of Japan's Sony Group Corp will create a television powerhouse to grab more advertising revenue, challenging top rival Walt Disney Company in a key growth market, industry officials said.
The Sony-Zee alliance, with about 75 news, entertainment, sports and movie channels in more than 10 languages, stands to become India's biggest player, with a market share of 27 per cent outstripping that of Disney's Star India, at 24 per cent.
"This will give them significant distribution muscle and an ad wallet," Uday Sodhi, a former Sony Digital head in India, told Reuters. "They will become a formidable force."
Wednesday's plan, to be finalised over 90 days of exclusive talks, will see Sony pump growth capital to the tune of $1.6 billion into its domestic unit to boost the prospects of the combined firm, while taking a majority stake in Zee.
