Benzinga | Sep 22, 2021 10:09AM EDT

Sony Pictures Networks India To Merge With Zee Entertainment

* Sony Group Corp's (NYSE:SONY) Sony Pictures Networks India (SPNI) and Zee Entertainment Enterprises Ltd (ZEEL) agreed to combine their linear networks digital assets, production operations, and program libraries.

* The combined publicly listed company will lead consumers from traditional pay-TV into the digital future, benefitting consumers throughout India across content genres, from film to sports.

* SPNI parent Sony Pictures Entertainment would invest growth capital in SPNI to have a cash balance of $1.575 billion.

* The cash will help enhance the combined company's digital platforms and bid for broadcasting rights in the sports landscape.

* Sony Pictures Entertainment would hold a majority stake in the combined company.

* Current ZEEL CEO Punit Goenka would lead the combined company.

* The combined company's board would include directors nominated by Sony Group and appoint the majority of the board members.

* Related Content: One Of Netflix's Biggest Deals In India Said To Fall Apart: Good News For Amazon, Disney?

* Price Action: SONY shares are trading higher by 1.71% at $114.30 on the last check Wednesday.