Sony acquiring TEN Sports for $385 million

Multiple sources with direct knowledge of the development confirmed that SPN is close to acquire Ten Sports for about Rs 2,000 crore, a deal that will make sports broadcasting in India a duopoly of 21st Century Fox-owned Star India and Japanese giant Sony Corp-owned SPN.
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The deal is almost done and should be officially announced within the next 3 weeks," he said. When contacted, a SPN spokesperson said, "As a matter of policy, we choose not to comment on speculation." Mihir Modi, chief finance & strategy officer at ZEE, declined to comment.

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mhsabir said:

And why wont it be? Or should not be? I mean its morally wrong what they do or they would do after acquisition, but I suppose that cannot be used as a justification?

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“ZEEL is looking to sell Ten Sports to Sony for around Rs 2,500 crore. The deal is in the final lap. Some issues like the period for non-competition are being ironed out,” a source familiar with the development said.
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The non-compete clause will keep Subhash Chandra-promoted ZEEL out of sports broadcasting. The period being discussed is anywhere between three and six years, the source added.

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With the kind of financial muscle these two media heavyweight gorillas bring, Goenka and Chandra probably thought it would not be okay just being a member of the pack. And in such a scenario, it clearly makes business sense to cut one’s losses and get out. And if emotions have no business to be in business, then Zee getting out of the sports business makes more sense. Still, it must have been a tough call for Chandra and Punit to cut the cord.

However, the sale deed has yet to be signed – ZEEL informed the BSE that it is in advanced discussions to sell its sports business to potential buyer(s). The ball is in the hands of Sony Pictures Television worldwide networks boss Andy Kaplan, SPN India CEO NP Singh and of course the two main players out on the green - Subhash Chandra and Punit Goenka.

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Andy Kaplan, President, Worldwide Networks, Sony Pictures Television added, "India has been a strong driver of Sony Pictures' growing networks business for two decades, and sports continue to play a significant role in that growth. The acquisition of TEN Sports, following the launch of SONY ESPN channels, will mean that our Indian networks would reach over 800 million viewers and broadcast many of the most popular and prestigious sporting events in the world."
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Punit Goenka, Managing Director, ZEE commented, "This is a landmark deal for ZEE and a step towards a strategic portfolio shuffle as we grow our general entertainment business both in the domestic and overseas markets.

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