Post Zee merger collapse, Sony still bets on India

NEW DELHI: With the proposed merger of its Indian arm with Zee terminated, Sony will seek various options, including finding another opportunity to replace the plan and organic growth opportunities in India, which has great potential in the long term, according to a top company official.

In an earnings call, Hiroki Totoki, president, COO & CFO of Sony said India is a very appealing market where it would continue to invest.

“India on a long term basis has a great growth potential. It’s a very appealing market. Therefore, we will try to seek various opportunities and if we can find another opportunity that would replace this type of plan, “ Totoki said when asked about the company’s strategy in India after the termination of the proposed merger.

On the investment which Sony had committed as part of the deal, he said: “Well, that investment is not going to change a capital allocation or it will not change our behaviour in our investment. So at the moment, we do not have any concrete plans.”

The earnings call was held on February 14. As per the merger conditions, which was agreed upon between Sony and ZEEL, the Japanese giant was also supposed to invest USD 1.5 billion in the merged entity.

The group will also continue to pursue organic growth as per its strategy in India, where it operates through Culver Max Entertainment (earlier known as Sony Pictures Network India), he said in the investors call.

Sony had last month terminated an agreement with ZEEL to merge its two Indian entities - Culver Max Entertainment and Bangla Entertainment Private Limited (BEPL) - with ZEEL.