Zee to sue Sony for canceling merger deal
Zee Entertainment is gearing up for a legal battle with Japan's Sony Group after Sony called off a merger between its Indian subsidiary, Culver Max Entertainment, and Zee. The deal, announced in 2021, would have formed India's biggest broadcasting company. Sony stated on Monday, "SPNI, a wholly-owned subsidiary of Sony Group Corporation, today issued a notice terminating the definitive agreements entered into by SPNI and Zee Entertainment Enterprises Ltd (ZEEL) relating to the merger of ZEEL with and into SPNI."
Sony seeks $90 million termination fee; Zee refutes claims
Sony demanded a $90 million termination fee from Zee after ending the agreement. Zee fired back in a stock exchange filing, saying it "categorically refutes all claims and assertions made by Culver Max and Bangla Entertainment Pvt. Ltd. (BEPL) regarding alleged breaches of the MCA by ZEEL, including their claims for the termination fee." Zee is now exploring all options to take necessary steps to protect its stakeholders' long-term interests, including legal action.
Zee claims efforts were made to implement merger scheme
Zee's board asserts it followed necessary steps for the merger. Despite attempts to extend the deadline with Culver Max and BEPL, negotiations failed. Zee disclosed that its CEO, Punit Goenka, was willing to step down for the merger. However, these talks did not lead to any proposal, prompting Sony to terminate the agreement. The deal fell apart as the two media giants couldn't agree on who would lead the combined entity.
