NCLT Approves Zee-Sony Merger In December 2021, Zee Entertainment and Sony Pictures agreed to merge their businesses

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Freepik

The National Company Law Tribunal (NCLT) on Thursday approved the merger scheme of India's homegrown entertainment company Zee Entertainment Enterprises with Culver Max Entertainment (erstwhile Sony Pictures Networks India or SPNI).

This order by the Mumbai bench, headed by HV Subba Rao and Madhu Sinha, reportedly will pave the way for the creation of a $10-billion media company. The tribunal also dismissed all objections regarding the merger, raised by some lenders including Axis Finance, JC Flowers Asset Reconstruction Co, IDBI Bank, Imax Corp, and IDBI Trusteeship.

The order will be uploaded on the website by Friday, NCLT said. The bench had reserved the order on 10 July.

In December 2021, Zee Entertainment and Sony Pictures agreed to merge their businesses. Both media houses approached the tribunal for sanctioning the merger after obtaining permissions from the National Stock Exchange, BSE, and sectoral regulators such as the Competition Commission of India and the Securities and Exchange Board of India.

However, the process stopped at the tribunal when a few creditors raised objections.

According to the creditors objecting to the merger, the order has a direct bearing as one of the integral parts of the scheme of the merger is the appointment of Goenka as the Managing Director of the merged entity.

Subsequently, after an order from the Securities Appellate Tribunal, the Sebi chairperson heard Goenka's reply in the ex-parte order passed by the regulator on 12 July. Sebi is expected to give its final order in the matter on Monday, 14 August. If Goenka gets relief from Sebi, it will ensure his position as the MD and CEO of the second-largest entertainment network in the country.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
Business News

JPMorgan Shuts Down Internal Message Board Comments After Employees React to Return-to-Office Mandate

Employees were given the option to leave comments about the RTO mandate with their first and last names on display — and they did not hold back.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

News and Trends

NeoSapien Secures INR 80 Lakhs on Shark Tank India 4 for AI Wearable

Founded in 2024 by Dhananjay Yadav and Aryan Yadav, NeoSapien aims to integrate AI into daily life through its wearable technology

Growing a Business

5 Risk-Taking Lessons From Founders Who Bet Big and Won

Discover the bold moves and strategic risks that catapulted these entrepreneurs to success. Learn how their fearless decisions can inspire your own path to growth.

News and Trends

Recur Club Announces Credit Offerings for Startups Beyond Series A and SMEs

In FY 24–25, the platform also plans to deploy an additional INR 2000 crores through its Recur Swift program for startups.

News and Trends

BGauss Secures Rs 161 Crore Funding from Bharat Value Fund to Accelerate Expansion

The funds will be utilized to scale BGauss's manufacturing capacity, enhance in-house R&D for new product launches, and bolster marketing efforts