Zee Entertainment and Sony Pictures Networks India have signed a merger deal, as per a regulatory filing by the media company to the stock exchanges on 22 September, reported NDTV. The report also states that in a board meeting held on Wednesday, Zee Entertainment's board of directors approved the merger between Sony Pictures Networks India and Zee Entertainment Enterprises Limited (ZEEL).
Punit Goenka will continue to be the managing director and CEO of the entity. The NDTV report adds that Sony Pictures will have the right to appoint the majority of directors.
A statement by Zee Entertainment reads that Zee will hold 47.07 per cent, while Sony Pictures will have a majority stake of 52.93 per cent in the merged company.
"The Board believes that this merger will further benefit ZEEL. The value of the merged entity and the immense synergies drawn between both the conglomerates will not only boost business growth but will also enable shareholders to benefit from its future successes,'' R. Gopalan, Chairman, Zee Entertainment, said in a statement.
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