Sony Pictures was going to buy the entertainment business from the country's oldest private media house Zee Group, but now this deal seems to be in trouble. Sony Pictures has recently sent a letter of termination of this deal to Zee Group. If anyone is benefiting the most from this entire incident, it is billionaire industrialist Mukesh Ambani. Yes, now Mukesh Ambani is going to earn huge profits due to the breakdown of Sony-G deal.
Actually Mukesh Ambani is the new media mogul of this country. His company is Viacom 18 which runs many entertainment channels of Colors Network in the country. Recently his company has signed a binding MoU from Disney to buy its Star Network. After this deal, Viacom 18 will have the ownership rights of all the channels of Star Network and OTT platforms like Disney + Hotstar. In such a situation, the alliance of Sony and Zee could give it a tough competition, the chances of which are now looking slim.
It's all a game of earning profit from advertising.
If there was a deal between Sony and Zee, then being the largest media network in the country, it would have got a major share in the advertising world. At the same time, the library of OTT platforms like Zee5 and Sony Liv would also have been the same, which means it would have raised its flag in the digital space also. It could negotiate as per its own while dealing with big companies like Hindustan Unilever (HUL) and Procter & Gamble (P&G). But now due to the deal breaking, not only Sony and Zee will suffer losses, but HUL and P&G will also have to depend on other rivals.
On the other hand, if the deal between Viacom 18 and Disney is completed, then the new company will have a total of 115 TV channels and 2 OTT platforms. Currently, Star India has 77 channels and Viacom 18 has 38 channels. According to ET news, this will give Mukesh Ambani one-third share of Hindi channels in the cities of North India and one-fourth share in the Tamil market of South India.
Anyway, Mukesh Ambani focuses more on sports. This year he has also expressed his intention by keeping the digital rights of IPL and keeping it free for the public. In this way, in the deal with Disney, he will get the ownership rights of ESPN, along with this, more than one channel of Star Sports will also be registered in his account.
Mukesh Ambani will earn profits like this
Due to ownership of a big network of entertainment and sports channels, Mukesh Ambani will earn well in the advertising market. Anyway, the craze for cricket in India is not hidden from anyone. At the same time, their income will also increase due to the digital rights of IPL and many world sports. While being the largest company in the telecom and retail sector will help Reliance in keeping its own advertising cheap, the dependence of other companies on Viacom18 will increase.
Why did Sony-G's deal break?
The merger deal of Sony and Zee has been stuck in many regulatory complications for the last two years. Zee Group founder Subhash Chandra and his son Punit Goenka are accused of misappropriation of funds in the public listed company. In such a situation, Sony's parent Japanese company does not want to get entangled in any matter of 'corporate-governance', due to which it has terminated this deal.
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