Sony Pictures Networks India or Culver Max Entertainment will look at new acquisitions as it seeks to strengthen its market presence, MD & CEO NP Singh said on Wednesday in a note to employees.
Writing two days after the collapse of its proposed merger with Zee, Singh said that he was committed to setting the company up for a long-term, strong future. The statements by Singh come as Zee and Sony take their failed merger to court amid an ugly breakup. Valued at $10-billion in terms of size, the merger would have created a media behemoth spanning television, digital and film studios, sector experts said.
“We will actively explore new organic and inorganic possibilities. Our immediate focus will be back on unleashing our full potential, continuing to craft content that not only engages our audience but also boosts subscriber growth and revenues, thereby nurturing a culture rooted in excellence, pivotal for our ongoing growth and success,” he said in his note to employees.
“As we close the chapter on our proposed merger with ZEEL, I want to take a moment to talk to you, not just as your CEO but as someone who has been on this journey with you. This change in our plans allows us to step into a new phase of our story, which I believe is full of promise,” he said.
The failed merger with Zee has left Sony vulnerable in a media market that is rapidly consolidating, Karan Taurani, senior vice-president, research at Mumbai-based brokerage Elara Capital, said. The Walt Disney Company and Reliance Industries (RIL) have signed a non-binding agreement to merge their Indian units, Taurani said, with a deal likely in the months ahead.
The coming together of Disney Star and Viacom18, said experts, will create a media behemoth valued at around $12-13 billion, with 115 channels, two over-the-top platforms (Disney+ Hotstar and JioCinema), two film studios and a combined viewership share of 40%.
Zee-Sony would have had a viewership share of 30%, media experts said, and would have rivalled the Disney-RIL combine in terms of media might and heft with advertisers. On its own, Sony’s viewership share has been pegged at 10%, industry experts said, with its content largely lapped up by viewers in urban markets. It will need partners if it has to stand a chance in a consolidating market, experts said.
Reassuring employees, Singh said that Sony’s journey towards the merger showed the company’s resilience and dedication towards a common goal.
“We need to turn our attention back to the heart of our work – our current projects, our fantastic team, and the audiences who count on us,” he said.