Zee, Sony merger announced; Beleaguered chief Punit Goenka to stay at the helm

Sony Group Corp.’s Indian unit signed a non-binding deal to buy the country’s largest publicly-traded television network Zee Entertainment Enterprises Ltd., pouncing on a beleaguered company whose shareholders have sought removal of key officials.

Zee shares jumped 20% following the deal announcement, giving it a market value of $4 billion. About 53% of the merged entity would be owned by Sony India shareholders and the rest by Zee’s holders, the companies said. Sony shareholders will inject capital into its unit so that it will have about $1.58 billion of funds at closing, and a majority of the board would be nominated by Sony.