New Development In Zee-Sony Merger Saga; This Time A Request
On Wednesday, news agency Reuters reported that Indian media-cum-general entertainment conglomerate Zee Entertainment has requested Sony Group to reverse the termination of the $10 billion merger between their local unit and the Indian broadcaster. Additionally, Reuters has also reported that Zee has initiated legal proceedings to challenge Sony“s allegations of breach of terms through arbitration at the Singapore International Arbitration Centre.
Through a press release published on January 22, 2024, Sony Group Corporation has issued termination notice for the merger of Sony Pictures Networks India Private Ltd and Zee Entertainment Enterprises Ltd.
Sony Pictures Networks India Private Ltd, now known as Culver Max Entertainment Limited, a wholly-owned subsidiary of Sony Group Corporation, terminated the definitive agreements entered into by Sony and Zee Entertainment Enterprises Ltd relating to the merger of ZEEL with and into Sony India which was previously announced on December 22, 2021.
The statement said the definitive agreements provided that if the merger did not close by the date twenty-four months after their signature date, the parties would be required to discuss in good faith an extension of the end date required to make the merger effective by a reasonable period of time.
“Such discussions were required to be held for a period ending thirty days after the End Date (the “Discussion Period”). The definitive agreements further provided that if the parties are unable to agree upon such an extension by the end of the Discussion Period, any party could terminate the definitive agreements by providing written notice,” the statement said.
Responding to the development, Zee told the stock exchange that the company is committed to the merger with Sony and is continuing to work towards a successful closure of the proposed merger and is engaging in good faith negotiations with Sony with a view to discuss the extension of the date required to make the Scheme effective, by a reasonable period of time.
