Zee and Sony have dominated Indian TV screens for decades with channels offering entertainment, news, and sports across the country in English, Hindi and regional languages. The news of these two coming together promised the formation of a media behemoth to compete with OTT platforms, but the merger faced hurdles from Zee's creditors.
After resolving the dispute with IndusInd Bank, Zee is talking to lenders IDBI and Axis for settling their dispute.
Massive media merger stuck
Founded and formerly led by Subhash Chandra, Zee has offered Rs 149 crore to IDBI, to move ahead with a merger which will create a media giant worth Rs 82,000 crore.
The network's representatives are also separately negotiating with Axis Finance, to which it owes almost Rs 150 crore.
Once all the differences are ironed out, the path will be cleared for a new conglomerate, in which Sony will own more than 50 per cent, and Zee founders will get close to 4 per cent.
A significant chunk of stakes in the new entity will be set aside for public shareholders.
Game-changing merger on track
Around 18 per cent of Zee was owned by US-based Invesco Developing Markets, until it sold its entire stake earlier in April.
Signed more than a year back, the agreement for the merger has been approved by India's anti-trust regulator and competition watchdog.
Creditors of Zee Entertainment Limited had been seeking insolvency proceedings against the firm for defaulting on loan repayments.
Apart from the dispute with creditors, Zee CEO Punit Goenka also had to pay Rs 50 lakh for selling an insider trading case.
