In the latest issue of India Intelligence & Insights, we weigh up the prospects of a tie-up between Sony and Zee, and how that could recast the competitive landscape.

A possible deal has generated plenty of press speculation as a debt-laden Zee courts strategic investors, with Sony seen as a frontrunner.

India is a cornerstone for Sony’s media business, where the company has missed out on some large-scale opportunities in recent years, having lost in bids for IPL and BCCI cricket rights as well as for regional broadcast assets ETV and Maa TV.

In most instances, Sony was a major contender, only to be pipped at the post by a narrow margin. Zee provides Sony with another and perhaps final opportunity to double down in India, its most important media growth market.

HIGHLIGHTS

• Zee represents Sony’s last value buying opportunity to scale in India
• Zee fills up Sony’s void in regional content, strengthens footing in core Hindi
• Acquisition is earnings accretive
• Provides more leverage in distribution, even under NTO