The Zee Entertainment Enterprises Ltd said on Wednesday that its board has given in-principle approval for their merger with Sony Pictures Networks India (SPNI).

Zee, that has got a presence in television broadcasting and digital media with brands such as Zee TV, has been under pressure from top its investors for a management reshuffle, including the exit of Chief Executive, Punit Goenka, from their board.

Zee said in an exchange filing that the company and SPNI have entered into a non-binding term sheet in order to bring together their linear networks, digital assets, production operations as well as program libraries.

As part of the proposed deal, Zee shareholders will hold about 47.07 percent stake and the rest of the merged entity will be owned by the Sony India shareholders. The term sheet gives a period of 90 days, during which both firms will conduct mutual diligence and finalize definitive agreements, the filing said.

The merged entity will be publicly listed in India and Goenka will be their managing director as well as chief executive officer. Zee also said that the merger proposal would be presented to shareholders for their approval.