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It is said when two elephants come together they aim to capture a huge Market share.
A similar story was of Zee and Sony, where SITCOM planned to come together in a 10 Billion Dollar deal to come together and serve a huge Market by eliminating the competition and having the upper hand in many circumstances. Having more market share makes the competition tough for the other players in the market.
However, Finance is considered the lifeline of any business, and that did not support the Indian Company - Zee to come up with ___ based Company - Sony. The 10 Billion Dollar deal was set to take up from 2021, with Sony holding 50.86%, Zeel founders holding 3.99% and stakeholders of Zee would get 45.15% in the same. However, the deal was delayed due to certain legal regulations coming into the picture which led to legal suits, and an investigation among others related to Zee. It would have contributed to making Sony the Biggest in the Indian market which was the fastest growing. If the deal had happened, 37% of the market share would have been of Sony, leaving behind 24% of market share holder Disney and other Competitors like Netflix, Amazon, etc. The merger would have given birth to a duopoly where Disney and Reliance already planning to come together.
With the termination of the deal, it became possible for other Competitors to come up through some other deal to gain market share and create a hold tight to ensure If anything like this comes up in the future, every player in the market remains prepared.
With the Zee-Sony merger Ended, it has navigated for the industry moved up ahead in a manner to make sure that They owned a share of the market which cannot make them Neglected similar to the Jios Entry into the Communication sector which led to the loss of Old Competitors like Vodafone and idea.
Henceforth, it is going to be a challenge for the whole industry and how each and every organization will plan their pathway to achieve success in the competition by planning out mergers with big elephants or becoming a big player in the sector to gain the share in the market with the content in an effective manner and productive one.
Thank you.
Regards,
Vansh Chaturvedi,
Kautilya, IBS Mumbai.
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