According to the information provided to the exchanges, both companies ” Zee enterprises and Sony ” will withdraw their respective Composite Schemes of Arrangement from the NCLT and notify the relevant regulatory authorities, effectively terminating the $10 billion deal.
Additionally, the entertainment giants have agreed to forgo all rights to file any claims or counterclaims against each other related to or arising from the Transaction Documents, including their termination and implementation.
Zee Entertainment and Sony logos are displayed.
Zee Entertainment Enterprises announced that it has reached an agreement to settle all disputes with Sony regarding the termination of their merger. Following this news, the media company’s share price surged by up to 15% today (August 27). Zee’s stock hit an intraday high of ₹154.9 before settling at ₹147.7, still about 10% higher than the previous close.
“As part of the settlement, Zee Entertainment and Sony Pictures Networks India have mutually agreed to withdraw all claims against each other in the ongoing arbitration at the Singapore International Arbitration Centre, as well as all related legal proceedings in the National Company Law Tribunal (NCLT) and other forums,” Zee Entertainment stated.
Earlier this year, Sony Pictures Networks India (SPNI) terminated a proposed $10 billion merger deal with Zee Entertainment, effectively canceling their December 2021 agreement. Sony had demanded a $90 million termination fee, citing alleged breaches of the merger agreement by Zee Entertainment. In response, Zee sought a $90 million (₹750 crore) termination fee from SPNI and its entity Bangla Entertainment Pvt. Ltd. (BEPL) in May. At that time, Zee claimed in an exchange filing, “Culver Max and BEPL have failed to fulfill their obligations under the Merger Cooperation Agreement (MCA). As a result, the company has terminated the MCA and demanded the termination fee from Culver Max and BEPL.”
The Zee and Sony merger
On August 10, 2023, the Mumbai bench of the NCLT approved ZEEL’s plan to merge with BEPL and Culver Max Entertainment, both part of the Sony group. This merger had the potential to create a media company valued at $10 billion.
However, Sony called off the merger on January 22, citing Zee’s failure to meet certain financial terms of the agreement and its inability to devise a strategy to address these issues. In response to these allegations, Zee stated that the Japan
Had the Sony-Zee merger proceeded, it would have resulted in the creation of the largest entertainment network in the country, encompassing over 70 television channels, two video streaming services (ZEE5 and Sony LIV), and two film studios (Zed Studios and Sony Pictures Films India).
