Zee Entertainment and Sony Group’s India units, Culver Max Entertainment and Bangla Entertainment, have settled their disagreements over a failed merger without exchanging any money. The companies agreed to drop all claims and legal actions against each other in ongoing cases, including those at the Singapore International Arbitration Centre (SIAC) and the National Company Law Tribunal (NCLT).
The settlement was made so both companies can focus on new growth opportunities in the media and entertainment industry.
This announcement comes just a day after Gaurav Banerjee became the new Managing Director and CEO of Sony Pictures Networks India (SPNI).
Earlier this year, Sony canceled the merger deal with Zee, which had been in the works for two years, and sought $90 million in termination fees. The deal was called off due to Zee not meeting certain conditions and disagreements over leadership of the merged company. Zee responded by filing a case to enforce the merger but later withdrew it. Zee then terminated the merger from their side and demanded the same $90 million from Sony.
The original merger agreement, signed in December 2021, would have given Sony a 50.86% stake in the new company, while Zee shareholders would have owned 45.15%, and Zee founders would have held 3.99%. Sony also planned to invest $1.5 billion into the merged entity.
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