Sony-Zee Merger: NCLT Directs Zee To Convene Shareholders' Meet

The National Company Law Tribunal (NCLT) has directed Zee Entertainment Enterprises (ZEEL) to convene a meeting of equity shareholders of the company on October 14, 2022 to consider the proposed merger with Sony.

"The National Company Law Tribunal (NCLT) Mumbai bench has directed in its order, that a meeting of the Equity Shareholders of Zee Entertainment Enterprises be convened and held on Friday, 14th October, 2022 for the purpose of considering, and if thought fit, approving the proposed merger of the Company with Culver Max Entertainment Private Limited (formerly Sony Pictures Networks India)," a ZEEL spokesperson says.

A definitive agreement to merge ZEEL and Culver Max Entertainment was signed in December 2021, to combine their linear networks, digital assets, production operations and program libraries.

As per the definitive agreement between the companies, Sony is supposed to have a cash balance of 1.5 billion dollars to make sure the company could drive better content creation and enhance its digital footprint.

The merger is important for the media industry as it will result in the manifestation of the biggest entertainment network in the country with an enormous cumulative viewership.