Sony Pictures India private Limited (SPNI) and Zee Entertainment Enterprises Ltd. (ZEEL) today announced that they have signed agreements for IPL and ICC media rights. The companies will merge and have the biggest and strongest entertainment, sports, digital behemoth that India has seen. the merger even has the potential to shake Disney Star Network’s hegemony for Cricket rights.
The two companies will merge to have a stronger creation of content, strengthen the footprint in the digital media to bid for media rights in the fast-growing sports landscape and pursue other growth opportunities. Under the transactions have been completed by a non- compete agreement. SPE will be paying a fee to ZEE for promotions to get primary equity capital into SPN.
Sony has invested US$1.58 billion with Zee. Zee has sold its Ten Sport division in 2017 but Zee-Sony will challenge Disney’s Star. Indian premier League (IPL) merged company will be making a bid from BCCI for about US$510 million per year rights fee.
Sony Pictures and Zee Entertainment merges together; will bid for major sporting rights
The IPL Media Rights will be released by January. Both ICC and IPL Media Rights are with Disney Star Network. Now Sony-Zee Merger will be facing a neck to neck competition.
Analysts say that sports will always play a major role in the scheme of things and the merged company will have the financial ability to bid for someone for marquee properties like IPL, cricketing properties, Pro Kabaddi League. Currently it is being aired on Star and Disney and will come for renewal. Vivek Menon thinks that getting these properties would be a game-changer.
the Zee promoters may own the combined company to 20% of its shares. The construct does not promote pre-emptive or other rights to get equity in the merged company from Sony Group or other group.
There will be laws for the promoters of ZEE including pricing guideline when they go to purchase the share.
Read more: Barcelona looking to replace Coutinho with Dani Olmo in January
