Viacom18 & ZEE Entertainment in early merger talks

Viacom18 and ZEE Entertainment Enterprises Limited have reportedly started talks about a potential merger.

If the deal goes through, Viacom18 could become among the largest shareholders of the combined entity, as more than 65% is owned by foreign institutional investors, according to AFAQs.

A source told the publication, “The merger of Viacom18 and Zee is proposed to be done through a share swap deal. The talks started a few weeks ago, and the deal is unlikely to involve any cash transaction.”

The source also said that a deal is likely to go through only after the share price of ZEEL moderates by 15-20% from current levels.

It added, “A middle ground has to be worked out by the investment bankers of the two groups,” the second person said on condition of anonymity. “The two parties have to agree to create a content major as a priority rather than looking at their controls in the merged entity.”

Earlier, talks between a merger between Viacom18 and Sony Pictures Networks India broke down.