During a recent earnings call on February 14, Hiroki Totoki, President, COO & CFO of Sony, expressed optimism regarding the company’s future plans in India. He confirmed that although the merger of Sony’s Indian arm with Zee has been terminated, Sony remains committed to the Indian market.
“India on a long-term basis has great growth potential. It’s a very appealing market. Therefore, we will try to seek various opportunities and if we can find another opportunity that would replace this type of plan,” said Totoki.
Despite the termination of the proposed merger with Zee, Sony is dedicated to pursuing growth opportunities in India. Totoki stated that the company will continue to focus on organic growth, following its established strategy in India through Culver Max Entertainment (formerly known as Sony Pictures Network India).
Addressing concerns about the investment committed as part of the deal, Totoki clarified, “Well, that investment is not going to change capital allocation or our behavior in our investment. So at the moment, we do not have any concrete plans.”
In September 2021, Zee Entertainment Enterprises (ZEEL) approved a merger with Sony Pictures Networks India (SPNI). However, after the 90-day due diligence period, the merger deal was terminated in December 2021. As per the proposed merger conditions, Sony was obligated to invest $1.5 billion in the newly merged entity.
Under the original deal signed two years ago, Punit Goenka, the managing director and CEO of Zee, was slated to head the merged entity. However, in 2023, after accusations from the Securities and Exchange Board of India (Sebi) against Subhash Chandra and his son Goenka of diverting funds from Zee, the situation changed.
