MUMBAI: Sony's India unit finalised merger plans with local broadcasting giant Zee Entertainment on Wednesday in a deal that may yet be blocked by fierce opposition from a disgruntled US investor, reports AFP.
Analysts say the arrangement could create the country's second-biggest entertainment network, rivalling market leaders Disney.
"The combined company will create a comprehensive entertainment business, enabling us to serve our consumers with wider content choices across platforms," he said in a statement.
But Goenka's tenure has been opposed by Zee's largest shareholder Invesco, which in September demanded his ouster for "repeated governance failures and underperformance".
Zee and the US investment company have since faced off in court over Invesco's pursuit of an extraordinary general meeting and board overhaul.
Sony's deal would also allow Goenka's family to raise its stake in the combined entity to 20 percent in the future -- a clause shareholders led by Invesco are likely to oppose.
"Sony has a strong sports offering and an urban entertainment offering, which Zee does not have, and Zee is very strong in the regional and rural segments," he added.
India, home to 1.3 billion people, has an entertainment market worth $24 billion, according to accounting
If approved by regulators and shareholders, the deal is expected to be completed by the end of March 2022 and the new company will be publicly listed in India.
Sony Pictures Networks India will hold a majority 50.86 percent stake under the proposed merger.