Zee Entertainment has signed a merger deal with Sony Pictures Networks India Private Limited, the company said in an exchange filing on Wednesday.

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Zee Entertainment and Sony Pictures said they have received in-principle approval for a merger that will combine both companies' linear networks, digital assets, production operations and program libraries.

Zee Entertainment will hold 47.07 percent, while Sony India will hold 52.93 percent stake in the merged company. Puneet Goenka will continue to provide services to the merged company as MD and CEO for a period of 5 years.

Vallabh Bhanshali of Enam Securities believes that Zee-Sony will be a fabulous merger.

"Financial investors and strategic investors think differently. Someone who knows India so well - Sony has been here for decades, their perspective about management, about the company is clearly very different. So both may be entitled to their own perspective, fears and aspirations. So I think it is a fabulous merger."

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"From an investor's point of view, how this merger has been received is out in the open, of course the deal has to be concluded. If someone was in the game for financial gains, what sort of action can result in financial gains is also out in the open. Therefore if one were to act pragmatically, people will opt for exploring this potential merger."

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(Edited by : Aditi Gautam)

First Published:Sept 22, 2021 3:26 PM IST