In a new development,  Managing Director and CEO of Zee Entertainment Enterprises Punit Goenka has signed a non-binding term sheet for the merger of ZEE with Sony Pictures Network. SPN promoters will be infusing $1.575 billion post the merger. Goenka will be the MD and CEO of the new entity.  

"The Board of Directors of ZEE Entertainment Enterprises Limited (ZEEL), unanimously provided an in-principal approval for the merger between Sony Pictures Networks India (SPNI) & ZEEL. The Board has evaluated not only on financial parameters but also on the strategic value which the partner brings to the table," said ZEE in its official statement.

After the merger, SPN will hold a 52.93% stake in the entity. Zee Shareholders will take the remaining 47.07% stake.

The merger has been approved in the best interest of the shareholders and stakeholders, according to ZEEL. 

The term sheet provides 90 days for both parties to conduct mutual diligence and enter into a definitive agreement about the merger. The merged entity will be a publicly listed Company in India.