Sony to bid for Indian Premier League rights as a part of Zee merger

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Sony is making ready to enter the bidding for Indian Premier League cricket rights this month as a part of its deal to take management of media group Zee Leisure, in line with individuals aware of the matter.

A Sony-Zee bid for the 2023-2027 media rights for one of many world’s most dear sports activities competitions would arrange a battle with current holder Walt Disney, which owns rival Indian media firm Star India.

Different potential bidders embody Fb, which bid for the rights in 2017, Amazon and Mukesh Ambani’s Reliance Jio. The Board of Management for Cricket in India, the IPL’s governing physique, mentioned this week that it plans to launch the tender in late October.

“Positively sports activities is one space which shall be regarded upon keenly. It won’t solely widen our audience, but in addition enrich our content material choices on digital platforms,” Vikas Somani, head of M&A at Zee, informed the Monetary Occasions.

“With the money infusion as proposed within the transaction phrases, it offers us the firepower to go and bid competitively for these premium sports activities properties.”

The proposed merger between Sony and Zee was introduced final week as India’s largest listed leisure group faces a shareholder revolt led by Invesco, the US fund that desires to overtake the board and power out chief govt Punit Goenka.

The deal has not but been finalised however would create the most important media group in India, with every part from tv channels and studios to streaming. The 2 teams would management 27 per cent of India’s media market, in line with brokerage Edelweiss.

Sony would take a 53 per cent stake within the mixed entity and make investments practically $1.6bn, which Goenka and different executives say will probably be used to accumulate content material together with sports activities.

“It’s an essential deal at a really vital time when the India market is migrating from TV to digital. Sports activities are an enormous, large a part of that,” mentioned one individual aware of the deal. “In the long term, [it’s] very potential that what we’re placing collectively within the India market turns into the core of a Netflix-style streaming service.”

India is a fast-growing leisure market and the IPL is certainly one of its most dear property. The 2-month, short-format cricket match takes place yearly, attracting the world’s greatest stars. International and Indian corporations line as much as sponsor or promote throughout matches.

The IPL rights, which sold for $2.6bn in 2017, are anticipated to go for not less than 25 per cent extra this time, in line with Santosh N, a managing associate at monetary consultancy Duff & Phelps.

Sony has a sizeable sports activities presence in India, broadcasting every part from worldwide cricket matches to the Champions League soccer competitors. The corporate acquired TEN Sports activities Community from Zee in 2016 and beforehand held the IPL rights earlier than dropping out to Star in 2017.

However Santosh mentioned the cope with Zee would create a extra aggressive purchaser. “With [Sony and Zee] becoming a member of arms, they’ve an excellent bouquet of common leisure and sports activities channels . . . making it a really compelling bidder,” he mentioned.

Satoshi Sakae, an analyst at Daiwa Securities, mentioned the merger would enable Zee “to beef up its presently skinny sports activities content material”.

However the Sony-Zee deal could not proceed as it’s presently structured. Invesco, Zee’s largest shareholder with an almost 18 per cent stake, this week took the corporate to courtroom to power a rare common assembly in its effort to take away Goenka.

Some buyers have been pissed off with what they contemplate Zee’s underperformance and poor company governance beneath Goenka, whose father launched the corporate in 1991.

A lawyer for the shareholders mentioned in courtroom that they weren’t towards the proposed merger however felt that it must be thought-about by a “correct board”.

Sony declined to remark and referred to an announcement on September 22 saying the proposed merger with the Indian firm.

Further reporting by Amy Kazmin in New Delhi

Weekly publication

Sony to bid for Indian Premier League rights as a part of Zee merger

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