Sony Picture Network India (SPNI) management is committed to long-term growth in India and the company will actively explore new organic and inorganic possibilities to strengthen its presence in the country, company Managing Director and CEO, NP Singh has told employees.
In a letter, two-days after the calling off of the USD 10 billion merger deal with Zee Entertainment, he asked employees to focus on current projects, with an immediate goal to unleash the company's full potential, continuing to craft content that not only engages audiences but also boosts subscriber growth and revenues.
"As we close the chapter on our proposed merger with ZEEL (Zee Entertainment Enterprises Ltd), I want to take a moment to talk to you – not just as your CEO but as someone who has been on this journey with you. This change in our plans allows us to step into a new phase of our story, which I believe is full of promise," Singh wrote in the letter seen by PTI.
He further said, "as we transition from this phase, I am, along with the senior management team, committed to setting the company up for a long-term, strong future. We will actively explore new organic and inorganic possibilities to strengthen our market presence.” Reflecting on the two year since the proposed merger with ZEEL was announced, he said, "Our journey towards the merger has been remarkable, showing us how resilient and dedicated we can be when working towards a common goal." Comments from SPNI about the letter and company's organic and inorganic growth plans could not be obtained as a mailed query remained unanswered.
In the letter, Singh exhorted the employees "to turn our attention back to the heart of our work – our current projects, our fantastic team, and the audiences who count on us".
"Our immediate focus will be back on unleashing our full potential, continuing to craft content that not only engages our audience but also boosts subscriber growth and revenues, thereby nurturing a culture rooted in excellence, pivotal for our ongoing growth and success," he said.
He said the media and entertainment world is constantly changing and “our journey is not just about adapting to change; it's about leading it”.
On Monday, Sony Group Corp, the Japanese parent company announced the termination of the USD 10 billion merger agreement with ZEEL, while seeking USD 90 million for breach of conditions besides initiating arbitration.
In a statement, Sony Group Corporation (SGC) said Zee Entertainment Enterprises Ltd (ZEEL) did not satisfy the merger conditions despite engaging in discussions to extend the end date for consummation of the transaction.
On December 22, 2021, Sony Pictures Networks India (SPNI) and ZEEL had entered into a definitive agreement to merge, with a two-year deadline. This was extended for a month in December last year.
Sony said it was "extremely disappointed that the conditions to the merger were not satisfied" by the deadline, which had been set as January 21. The company added that it "remained committed to growing our presence" in India.
The deal would have created an entertainment conglomerate with more than 70 Indian TV channels, popular Bollywood studios and an extensive film library to take on global powerhouses Netflix and Amazon.
According to a media report, Sony Group has already moved Singapore International Arbitration Center (SIAC) claiming USD 100 million (around Rs 748.5 crore).
SPNI, now known as Culver Max Entertainment, is an indirect wholly-owned subsidiary of Sony Group Corporation, Japan - owns 26 channels, operating in Hindi and several other languages having a viewership of over 700 million.
Besides, it has also one OTT platform Sony LIV on which it streams live sports, movies, short films and its original and archival content. It has around 33 million viewers.
The company has recorded a revenue of Rs 6,684 crore for the financial year ended on March 31, 2023.
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