The announcement of the Zee-Sony merger, led by Puneet Goenka’s Zee Entertainment Enterprises and Sony Pictures Networks India, was made in 2021. The National Company Law Appellate Tribunal (NCLAT) confirmed that it would hear Zee Entertainment Enterprises Ltd’s appeal against the NCLT’s order on Friday. The Board of Control for Cricket in India (BCCI) is considering delaying the sale of media rights for the Indian cricket team’s bilateral series, which follows the ongoing Indian Premier League, in light of the Zee-Sony merger. The BCCI is closely monitoring the merger deal before proceeding with the tender process for the upcoming series. There is a possibility that the BCCI may opt for a different tenure instead of selling the rights for the four-year period of 2023-2027. Previously, Sony had broadcasted the lucrative Indian Premier League on its channel until Star India acquired the rights in 2017. In 2018, Star Sports India secured the BCCI media rights for a substantial amount, covering both television and digital platforms until 2023. Currently, Disney Star holds the broadcast and streaming rights for ICC events, including the Asia Cup, while Sony Sports Network has rights for matches involving England, Pakistan, and Sri Lanka.
Regarding the Zee-Sony merger, the merger between Zee Entertainment Enterprises and Sony Pictures Networks India, led by Puneet Goenka, was announced in 2021. Despite encountering obstacles and shareholder conflicts, the merger received approval from the Competition Commission of India (CCI) in 2022 and was also approved by the stock exchanges. As part of the agreement, Sony will hold a 50.86% stake in the merged entity, while Zee’s promoters will hold 3.99%, and other Zee shareholders will hold 45.15%. Sony Corp’s chairman and CEO, Kenichiro Yoshida, recently stated that the merger is expected to be completed by the first half of the current fiscal year, which ends on March 31. However, the deal has faced legal issues, including an adverse interim ruling from market regulator SEBI against an Essel Group entity that founded Zee. The National Company Law Tribunal (NCLT) directed the stock exchanges to reassess and validate the non-compete clause of the merger, which was previously approved by SEBI. The National Company Law Appellate Tribunal (NCLAT) announced that it would hear Zee Entertainment Enterprises Ltd’s appeal against the NCLT’s order on Friday, which directed the stock exchanges to reconsider initial approvals of the merger. IDBI Bank’s insolvency plea against Zee Entertainment was dismissed by the Mumbai bench of NCLT, and Zee repaid dues to IndusInd Bank, leading the lender to withdraw objections against the merger. Zee’s founders have been in discussions with Axis Bank Ltd and JC Flowers & Co.’s asset reconstruction unit to settle dues of Rs 400 million.
