Sony Group Corp announces extension of merger timeline with ZEEL

Sony Group Corp of Japan has announced that the merger of its Indian subsidiary with Zee Entertainment Enterprises will require a few additional months to finalize, beyond the initial September deadline.

In an issued statement Japan’s Sony Group Corp said, "This transaction was expected to be completed by the end of the first half of 2023, but based on the current state of preparation, We are pleased to inform you that this project is expected to be completed within the next few months. The impact of this transaction on the Company's consolidated business results is still under scrutiny."

The merger journey commenced in December 2021 when ZEEL's Board of Directors reviewed and sanctioned the Scheme of Arrangement, as per Sections 230 to 232 of the Companies Act, 2013. This scheme outlined the merger between the Company and Bangla Entertainment Private Limited, an affiliate of Culver Max Entertainment Pvt Ltd (formerly known as Sony Pictures Networks India Private Limited), into Culver Max Entertainment Pvt Ltd.

However, the merger process encountered difficulties when several lenders associated with ZEEL raised objections. On August 10, after dismissing all objections raised by the lenders, the National Company Law Tribunal (NCLT) gave its approval for the merger.

Industry experts predict that the combined entities will possess more than 70 TV channels, two video streaming platforms (ZEE5 and Sony LIV), and film studios (ZEE Studios and Sony Pictures Films India), commanding a market share of 26%. This merger will significantly expand the audience reach of ZEE and Sony to over 700 million individuals across their television and digital platforms, strengthening their market presence and increasing their share of the advertising market.