Sony acquires Zee’s TEN Sports for $385 million

Zee Entertainment Enterprises Ltd (ZEEL) on Wednesday announced the sale of its sports network TEN Sports to Sony Pictures Network (SPN) in an all cash deal for $385 million.

TEN Sports portfolio includes TEN 1, TEN 1 HD, TEN 2, TEN 3, TEN Golf HD, TEN Cricket and TEN Sports. The network operates these channels across India, Maldives, Singapore, Hong Kong, Middle East, and Caribbean.

n a filing to the Bombay Stock Exchange on Wednesday, ZEEL said that the board of directors of the company has approved the sale and transfer of Zee’s sports broadcasting business to SPN. TEN Sports network is currently held by company’s two wholly-owned subsidiaries—Taj Television Limited, Mauritius and Taj Television (India) Pvt. Limited.

Completion of the acquisition is still subject to regulatory approval. The transaction is expected to close in four-five months.?

Sony’s current 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.

As for TEN Sports, the network holds broadcast rights to major cricket boards (South Africa, Pakistan, Sri Lanka, West Indies and Zimbabwe).

In addition, TEN Sports has 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.

A top official at a consultancy firm who did not wish to be named said that it does not make sense for Zee to continue with the sports business. “ This deal will allow the company to focus on its strengths that is general entertainment,” the official said.

In July, ZEEL had reported a 21.4% increase in net profit for the quarter ended 30 June, backed by an increase in advertising and subscription revenue. The company registered a net profit of Rs.218.1 crore, up from Rs.179.6 crore in the year-ago period.

SOURCE- The Economic Times