#SONY CARD CAPITAL ONE SIGN IN FULL#
In the first quarter, there was a revival in advertising, with a significant portion allocated to the IPL (Indian Premier League), although the split into two platforms limited the full potential. Regarding advertising and subscription revenue streams, I am starting to observe positive signs in both areas. But having said that, let me say that if the merger does not go through, and with the ICC rights that we already have, it is unlikely that we will go for another premium property. We will evaluate the merits of those bidding processes and then judge on that basis. But as I've always maintained, in any investment that ZEE makes, prudence is of the utmost importance therefore, it will not be a wild bidding process from our side. On a standalone basis, I have indicated that the combined revenue and cost synergies for ZEE would amount to approximately 8% to 9% of our profitability, significantly enhancing our overall profits. Furthermore, cross-marketing of content across both platforms can lead to cost synergies, even in the short term until we transition into a single platform. For instance, the backends of the digital side can merge immediately, eliminating the need for separate technological expenses. This provides an opportunity to leverage the existing sports network for monetisation and subscription growth.Īdditionally, there will be cost synergies that we intend to capitalise on. Another aspect contributing to the value is the presence of an established sports network within Sony, eliminating the need for creating one from scratch. This complementary nature allows for effective monetisation strategies. ZEE is known for its mass appeal, while Sony is recognised as a premium and metro-centric network. One of the advantages of this merger is the minimal overlap in viewership between the two networks. You will see more attrition on the corporate side because you don't need two sets of functions.Ī significant portion of the merger's value will be derived from the revenue aspect. When we merge the two OTT platforms, let's say two years down the line, you will see some attrition happening. And each channel requires a certain number of people on the programming, marketing, and sales sides. The most important point is that we have not hidden the non-compete fees from the market.Īs I said on the linear side, you will hardly see any attrition because both networks have to continue to run. It's very natural for people to pay non-compete fees. Therefore, Sony needs protection so that the entire know-how and expertise of running a media business for the last 30 years that my family has will not go against this merger, at least in the foreseeable future.
#SONY CARD CAPITAL ONE SIGN IN FREE#
The others in the family are free to go into whatever they want to. I have a large family, and I am the only member of the family that is tied to the business for the next five years. But if at all it needs to be discussed at some point in time, we will take it up.Ī non-compete is protection for Sony. We can go up until December 2023 without it impacting the deal as we have framed.
Our current contractual drop-off date is December 20, 2023.
I am focused on NCLT, and what happens in other parts will happen. Eventually, I have to fight the battle the way it is. I wonder many times about what the motivations could be for our regulators to be doing these kinds of things. Do you think there is a motivated campaign being run by powerful entities to stop or hinder the merger? The merger has lingered on for 18 months due to multiple regulatory problems that keep cropping up at every level. I remain hopeful that this timeline can be achieved. About a month ago, Sony issued a statement expressing their aim to complete the merger by September of this year. It has been 18 months since the merger announcement and it is uncommon for mergers in this country to take this long. Personally, I hold only a 4% stake, and it is the 96% of public shareholders who have been affected by the delays. It is not only beneficial for the company but also for 96% of the shareholders. Regardless of my position as CEO, the merger will proceed. The various distractions and sub-judice matters will follow their due course. The ZEE and Sony teams are talking to each other on a daily basis as we are in an advanced stage of integration.Īt the end of the day, I want to emphasise that the merger remains of utmost importance. Sony has also sought legal advice from their lawyers. Following the Sebi order, I discussed the matter with Sony and provided an explanation of our position. They are very committed to the merger, of course, subject to regulatory clearances.
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