Zee, Sony Units Reach Settlement On Scrapped Merger Deal

Zee Entertainment Enterprises Ltd. and Sony Group’s Indian units reached a settlement to conclude all disputes related to their scrapped merger deal worth $10 billion.

Zee Entertainment as well as Culver Max Entertainment Private Ltd.(formerly known as Sony Pictures Networks India Private Ltd.), together with its group company Bangla Entertainment Private Ltd. arrived at a comprehensive non-cash settlement, amicably resolving all disputes related to the scrapped merger deal, the companies said in a joint statement.

As part of the settlement, the companies agreed to withdraw all respective claims against each other filed before the Singapore International Arbitration Centre (SIAC), the National Company Law Tribunal (NCLT) and all relevant regulatory authorities.

In addition, the companies will also withdraw the respective composite schemes of arrangement from the NCLT and inform the relevant regulatory authorities.

The companies also said under the terms of the settlement, none of the parties will have any outstanding or continuing obligations or liabilities to the other.

The settlement stems from a mutual understanding between the companies to independently pursue future growth opportunities and focus on the evolving media & entertainment landscape, according to the statement.

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.

This promoted Zee to also initiate legal proceedings to contest against Sony's claims in Singapore as well as file an application with the NCLT to implement the $10 billion scrapped merger deal.

Zee later decided to withdraw the merger implementation application but said it will aggressively pursue all its claims against Sony in the ongoing arbitration proceedings at the SIAC and in other forums.

The latest development signifies the definitive conclusion of all disputes, according to the statement.

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