“The Board of the Directors of the company approved sale and transfer of the Sports Broadcasting Business of the company.to Sony Pictures Networks India (SPN) and its affiliates at an aggregate all-cash consideration of Dollars 385 million”, Zee Entertainment Enterprises (ZEEL) said in a BSE filing. Completion of the deal is subject to regulatory approval. Post-acquisition, SPN will own South Asia’s leading sports network with its existing portfolio of channels.
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It also holds the rights for world wrestling, some football leagues, WTA and ATP tennis events, golf tours, Asian and Commonwealth Games athletics, motor sports and cycling events, including Tour de France.
India has been a key growth driver for Sony and will now be reaching to over 800 million viewers with the acquisition of the Ten Sports network which inculdes TEN 1, TEN 1 HD, TEN 2, TEN GOLF HD, TEN CRICKET & TEN SPORTS.
Said Sony Pictures Networks India CEO NP Singh, “I welcome Ten Sports to the Sony family”.
Punit Goenka, managing director, Zee Entertainment, termed the transaction a “landmark deal”, saying it is part of a “strategic portfolio shuffle” at Zee, which is looking to focus on broadcasting, digital, films, live events, and global business.
The popular South Asian sports network is being sold for US$385 million.
ZEEL had grown its sports business over the last 10 years through acquisition of content at competitive prices.
The official announcement for the same was made on Wednesday.
ZEEL had bought Ten Sports from Dubai-based Abdul Rahman Bukhatir’s Taj Group in 2006.
There has been speculation over the sale of Zee’s sports channels to Sony Pictures Network. “We do not believe lack of sports channels in the bouquet would weaken Zee’s bargaining power in subscription deals”. However, Zee has wanted to exit this business as it incurred earnings before interest and tax loss of almost Rs 100 crore.
The deal is quite profitable for Zee with fund inflow of almost Rs 2000 crore and an exist from a loss making business.
In July, ZEEL had reported a 21.4% increase in net profit for the quarter ended 30 June, backed by an increase in advertising and subscription revenue.
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Subhash Chandra-promoted Indian media conglomerate Zee Entertainment Enterprises (ZEE) today agreed that it is in “advanced stage of discussion” for sale of its sports business.
