Zee Entertainment Enterprises Limited has agreed to merge with Sony Pictures Networks India.
The merger, which will see Puneet Goenka continue as the Managing Director and CEO of the merged entity.
According to the terms agreed, Sony will invest $1.57 billion and will be the majority shareholder with a 52.93% controlling stake.
The firms will combine their digital assets, linear networks, program libraries and production operations.
The shareholders of ZEEL will hold a 47.07 per cent stake.
In a message to employees, Sony Pictures CEO Tony Vinciquerra termed the merger as a huge opportunity for the company to grow its business.
Zee Entertainment Enterprises Limited, too, believes that the merger was in line with the firm's strategy to achieve higher growth and profitability as a leading media and entertainment firm across South Asia.
According to media reports, the merged entity will operate 75 television channels. Besides this, they will also own two film studios -- Zee Studios and Sony Pictures Films India, two video streaming services -- ZEE5 and Sony LIV, and a digital content studio (Studio NXT).
That would potentially make the Zee-Sony entity the largest entertainment network in India.