The news of Zee a completely Indian organization merged with Sony a Japanese firm came as astounding news, especially for the business and entertainment sector. The strategic deal between the two big entities is profitable for both of them. The MD and CEO of Zee Punit Goenka will lead the merger while some of the board members will be opted by the Sony group.
As per the reports, By Zee’s deal with the Sony group, Goenkas gets an opportunity to expand its family ownership in the new firm from current 4% to 20% in the future which is a high surge. The merger resulted in the soaring of Zee’s shares in the market which made even shareholders were left with no option but to accept the deal. From last week itself market was seen stirring.
With the breaking of this news ZEE stock increased 21.30 percent with a jump of Rs 310.10 on BSE. Both the companies will benefit from this tie-up both can use each other’s strengths and work on a weakness. For instance, the Hindi GEC division is Sony’s stronghold while Zee is weak in that segment. Whereas, Zee dominates the regional GEC segment and films across genres.
The audience and customers of Zee and Sony can hope that in the future they will get only one OTT platform instead of buying plans for two. The merger ratio is ZEEL’s 47.07% stake whereas 52.03% Sony Pictures stake. Zee gets a wider base to explore the global market in the future with the help of Sony’s international access.
It is speculated that Zee-Sony is going to take over and dominate the entertainment space in near future. An Indian businessman Punit Goenka despite having less stake is going to lead the merged entity which is a big success.