Sony initiates talks to acquire Star India business
Sony Pictures Entertainment (SPE) has initiated talks with Disney to acquire its Star India business as a contingency plan if its merger with ZEE Entertainment Enterprises Limited is delayed further.
Reports say that the Japanese company is looking at alternatives if its merger with ZEE falls through. The process has so far taken nearly two years.
A number of legacy issues concerning ZEE have resulted in the huge delay, which was expected to be complete by mid 2022. Currently, the India markets regulator has barred ZEE’s Punit Goenka from holding any key management positions in the new merged entity.
“In case it gets pushed beyond December, there is a high likelihood that Sony may advance talks with Disney post that,” said Karan Taurani, Vice President, Elara Capital.
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However, despite the talks, the Sony-Star deal may take a longer approval process due to a wider overlap for both platforms as they both cater to urban audiences.
It remains to be seen who Sony ends up with. Keep it with BizAsiaLive.com for more.