BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Prabhudas Lilladher Report

Zee Entertainment Enterprises Ltd.’s proposed merger with Sony Pictures Networks India is a win-win situation, as it will likely-

1. result in material revenue synergies (~6-10% due to better scale and reach)

2. drive growth, as merged entity will have cash ammunition of $1.7 billion to fund digital ambitions and

3. absolve uncertainty surrounding board room decision risks.

Post-merger, network will have a market share of ~28%, thereby creating an all-encompassing portfolio present across genres.

While Mr Punit Goenka is expected to continue as Managing Director and Chief Executive Officer for a period of five years, newly constituted board will have Sony’s dominance with Zee Entertainment’s promoter family getting only one board seat.

The deal will require approval of Competition Commission of India, Securities and Exchange Board of India and existing shareholders (75% votes have to be in favor).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.