Sony shelves $10-bn merger plan with Zee
Seeking $90 mn for breach of conditions besides initiating arbitration; Zee Board evaluating legal options
PTI
Delayed Deal
- Calls off after conditions not met
- Jan 20 was deadline
- Zee to contest in arbitration
- Zee proposes 6-month extension
- Sony chooses termination
New Delhi: Culver Max Entertainment, formerly known as Sony Pictures, on Monday terminated its proposed $10 billion merger agreement with Zee Entertainment, while seeking $90 million for breach of conditions besides initiating arbitration, charges that the Indian firm has refuted. In a statement, Sony Group Corporation (SGC) said Zee Entertainment Enterprises Ltd (ZEEL) did not satisfy the merger conditions despite engaging in discussions to extend the end date for consummation of the transaction. On December 22, 2021, Sony Pictures Networks India (SPNI) and ZEEL had entered into a definitive agreement to merge, with a two-year deadline.
However, last December, the deadline was extended for a month as per the provisions of the agreement, after both companies failed to resolve their difference.
