Zee ends a $10 billion deal with Sony India and enters into a settlement arrangement.

Zee-Sony Merger News: Zee Entertainment and Sony’s Culver Max Entertainment have reached a resolution to their disputes, and their $10 billion merger has been terminated. Zee shareholders had an 8% gain immediately after the announcement. The merger was initially approved in August, which would have made it the biggest media company ever.

On Tuesday, Zee Entertainment Limited made an announcement regarding its settlement agreement with Culver Max Entertainment Private Limited (CMEPL) (previously known as Sony India) and Bangla Entertainment Private Limited (BEPL). The agreement will serve to settle all conflicts by withdrawing all applications and claims at Singapore International Arbitration Centre.

On August 27, Zee stocks were up 11% at Rs 150.90. In an announcement made to exchanges, the companies will remove their respective Composite Schemes of Arrangement listed in NCLT and notify appropriate regulatory bodies leading to the termination of a $10 billion deal.

All claims to the $90 million termination fee, damages, litigation and other costs incurred, all claims for disposition costs of hive-offs, spin-offs, winding-ups, liquidations, closures of businesses and/or any other assets are also included in the settlement.

In April’s early days, Zee Entertainment Limited (ZEE), declared that it had resolved to terminate its merger implementation proposal lodged with the National Company Law Tribunal (NCLT), located in Mumbai, which was against Culver Max Entertainment (Sony).

On 10 August 2023, the Mumbai bench of NCLT gave its nod to ZEEL’s merger proposal with BEPL and Culver Max Entertainment, both subsidiaries of Sony Group. The merger was expected to create a gigantic media company worth around USD 10 billion.

Sony cancelled the merger on January 22. Zee failed to fulfil particular financial stipulations in the arrangement and formulate a plan for their modification which influenced this change of mind. On the other hand, Zed argued that the Japanese firm had acted in “bad faith” when it terminated the merger according to him.

If the merger of Sony and Zee would have happened, then, it would have created an entertainment network of the biggest size in the country controlling more than seventy television channels, two video streaming services (ZEE5 and Sony LIV) and two film production houses (Zed Studios and Sony Pictures Films India).