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There is immense potential for development in India, there will be another opportunity after the merger of Zee: Sony

New Delhi: with proposed merger Its Indian branch ended with Zee, Sony will explore various options including finding another opportunity to change the plan and organic growth According to a top company official, there are opportunities in India, which have great potential in the long term. In an earnings call, Sony President, COO and CFO Hiroki Totoki said that India is a very attractive market where it will continue to invest.
“India is in a very good position on a long-term basis Growth potential, This is a very attractive market. Asked about the company’s strategy in India after the completion of the proposed merger, Totoki said, “So, we will try to look for different opportunities and if we can find any other opportunity that can replace this type of plan ”
On the investment that Sony had made as part of the deal, he said: “Well, that investment is not going to change the capital allocation or it’s not going to change our behavior in our investments. So at the moment, we don’t have any Concrete plans.”
The earnings call was held on February 14.
As per the terms of the merger, which were agreed upon between Sony and ZEEL, the Japanese giant was also to invest US$1.5 billion in the merged entity.
He said in the investors call that the group will continue to drive organic growth in line with its strategy in India, where it operates through Culver Max Entertainment (formerly known as Sony Pictures Networks India).
Sony had last month concluded an agreement with ZEEL to merge its two Indian units – Culver Max Entertainment and Bangla Entertainment Pvt Ltd (BEPL) with ZEEL.
Sony Group Corporation (SGC) had said that ZEEL did not meet the merger terms and initiated arbitration proceedings before SIAC, claiming USD 90 million (approximately Rs 748.5 crore) as termination fee.
ZEEL filed a petition before the National Company Law Tribunal (NCLT), seeking direction to Sony Group to implement the merger plan.
On February 4, the Singapore International Arbitration Center (SIAC) rejected Sony Group’s interim plea to stop ZEEL from moving the NCLT to enforce the failed merger.
The Mumbai bench of NCLT has already issued notice to Sony on a petition filed in this regard.
The NCLT had approved the merger plan on August 10, 2023, which could create a US$10 billion media entity.
Had the merger been completed, the combined entity would have owned over 70 TV channels, two video streaming services – ZEE5 and Sony LIV – and two film studios – Zee Studios and Sony Pictures Films India – making it the largest entertainment network. Gets made. in country.
Sony Pictures Networks India (SPNI), an indirect wholly owned subsidiary of Sony Group Corporation, Japan, has 26 channels operating in Hindi and several other languages, with a viewership of over 700 million.
Additionally, it has an OTT platform Sony Liv on which it live streams sports, movies, short films and its original and archival content. It has around 33 million viewers.
The company reported revenue of Rs 6,684 crore for FY23.

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