The all-cash deal, awaiting regulatory approvals, is expected to conclude in 4-5 months
In a landmark deal, India's leading television media and entertainment company Zee Entertainment Enterprises (Zeel) has signed a definitive agreement with Sony Pictures Networks India (SPN) and affiliates to divest the sports broadcasting business operating under Ten Sports Network.
The all-cash deal, which is awaiting regulatory approvals, is valued at a whopping $385 million (around Rs 2,579 crore) and is expected to take 4-5 months to conclude.
On Wednesday, the stock surged nearly 3% on BSE and touched a fresh 52-week high of Rs 543.93 during the intra-day trade, before closing at Rs 539.65, up nearly 1.97% from Tuesday's closing price of Rs 529.20.
According to Punit Goenka, managing director, Zee Entertainment Enterprises Ltd (Zeel), this is a step towards a strategic portfolio shuffle as the company grows its general entertainment business both in the domestic and overseas markets.
"While we have grown our sports business over the last 10 years through acquisition of content at competitive prices, our focus now is on transforming ourselves into an all-round media and content company, comprising of five verticals -- broadcast, digital, films, live events, and international business; and we continue to move rapidly towards our set business goals," said Goenka, adding that he has always been proud of the sports business and strongly believes that Sony will add more value by taking it to even greater heights.
The Ten Sports portfolio being acquired comprises seven channels, of which five – Ten 1, Ten 2, Ten 3, Ten Cricket, Ten Sports – are standard definition (SD) and two – Ten 1 HD, Ten Golf HD – are high definition (HD).
These channels are available in several countries including the Indian sub-continent, Maldives, Singapore, Hong Kong, Middle East and the Caribbean.
In terms of content, Ten Sports holds broadcast rights to major cricket boards (South Africa, Pakistan, Sri Lanka, West Indies and Zimbabwe). In addition, Ten Sports holds rights to wrestling (WWE), football (UEFA Champions League, UEFA Europa League, French League, English Football League Cup), tennis (WTA Events, ATP events), golf (European Tour, Asian Tour, Ryder Cup, US PGA Championship, LPGA Tour, Professional Golf Tour of India and Golf Channel Block), athletics (Asian Games, Commonwealth Games), motor sports (Moto GP) and cycling (Tour de France) events.
The acquisition, according to N P Singh, chief executive officer, Sony Pictures Networks India, will add South Asia's leading sports network to SPN's existing portfolio of channels. "The acquisition will strengthen SPN's offering for viewers of cricket, football and fight sports, complementing our existing portfolio of international and domestic sporting properties. It also aptly demonstrates SPN's commitment to providing a broad range of sporting entertainment to fans across India and the sub-continent," said Singh.
Commenting on the development, Andy Kaplan, president - Worldwide Networks, Sony Pictures Television, said India has been a strong driver of Sony Pictures' growing networks business for two decades, and sports continue to play a significant role in that growth. "The acquisition of Ten Sports, following the launch of Sony ESPN channels, will mean that our Indian networks would reach over 800 million viewers and broadcast many of the most popular and prestigious sporting events in the world," said Kaplan.
A television destination for sports fans, SPN sports properties include cricket (IPL, CPL, Ram Slam), football (FIFA 2018 World Cup Russia, UEFA Euro 2016, FIFA World Events including FIFA U-17 World Cup 2017 in India, European and South American Qualifiers for FIFA WC 2018, FIFA Confederations Cup, LaLiga, Serie A, FA Cup, Copa America Centenario, International Champions Cup), tennis (Australian Open, ATP 1000 and 500 World Tour Events, Champions Tennis League), fight sports (TNA, UFC, Pro Wrestling League), basketball (NBA) as well as NFL and Premier Futsal.
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