Sony Pictures Networks India and Zee Entertainment Enterprises on Wednesday signed an agreement to merge their television channels, film assets and streaming platforms, PTI reported.

In September when the negotiations began, Sony had said it would invest Rs 11,905 crore and hold 52.93% stake in the merged company and Zee would have the remaining 47.07%.

Zee Entertainment Enterprises Managing Director and Chief Executive officer Punit Goenka will retain his post in the merged entity, NDTV reported. Sony Group will nominate the majority of the board of directors, which will also include the company’s current Managing Director and CEO NP Singh.

“[...] two leading media and entertainment companies join hands to drive the next era of entertainment filled with immense opportunities,” Goenka said. “The combined company will create a comprehensive entertainment business, enabling us to serve our consumers with wider content choices across platforms.’’

According to the agreement, Sony will have a cash balance of Rs 11,338 crore at closing, including infusion of money from shareholders of the company and promoter founders of Zee, PTI reported.

Sony Pictures Entertainment Chairman of Global Television Studios Ravi Ahuja said that the merger was an important step to assemble the strongest leaders of the sector, content creators and film libraries.

According to the statement, the merger will help in driving “sharper content creation across platforms, strengthen its footprint in the rapidly evolving digital ecosystem, bid for media rights in the fast-growing sports landscape and pursue other growth opportunities”.

The merger between the companies comes amid feud between Zee’s founders and its largest shareholder, United States’ Invesco Developing Markets Fund, Al Jazeera reported.

Invesco, which owns 18% stake in Zee, was unhappy with the way the entertainment firm was run. It had even urged the founders to call a shareholders’ meeting to remove Goenka.

Zee founders have said that Invesco had “certain larger design” behind calling for a shareholders meeting.