Zee Asks Sony Units To Pay $90 Mln For Calling Off Merger

Zee Entertainment Enterprises Ltd. sought a termination fee of $90 million from Sony Group’s Indian units for scrapping their proposed $10 billion merger deal earlier this year.

Zee, which also terminated the Merger Cooperation Agreement (MCA) on 23 May, sought a termination fee from Sony units -- Culver Max Entertainment Private Ltd. (formerly Sony Pictures Networks India Private Ltd.) and Bangla Entertainment Private Ltd. (BEPL) -- on account of their breaches under the MCA, the Indian media and entertainment company said in a stock exchange announcement.

“Culver Max and BEPL have failed to comply with their obligations under the MCA,” Zee said. “Therefore, the company has terminated the MCA and called upon Culver Max and BEPL to pay the termination fee i.e., the aggregate amount equal to $90 million in accordance with the MCA.”

In January 2024, Sony units scrapped their proposed merger with Zee, as well as invoked the arbitration clause. They also sought a termination fee of $90 million from Zee alleging the company breached the terms of the agreement signed in December 2021.

Zee later filed the merger implementation application with the National Company Law Tribunal (NCLT), but later decided to withdraw the application.

The company, however, said it will aggressively pursue all its claims against Sony in the ongoing arbitration proceedings at the Singapore International Arbitration Centre and in other forums.

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