Sony Calls Off $10 Billion Merger With Indian TV Giant Zee Entertainment Enterprises
22.01.2024 - 06:53
/ variety.com
Sony Group Corporation has ended its more than two-year attempt to merge its TV and streaming businesses in India with local giant Zee Entertainment Enterprises Limited.
In a statement, issued Monday, Sony Group said: “The merger did not close by the end date as, among other things, the closing conditions to the merger were not satisfied by then.
{Sony Pictures Networks India] has been engaged in discussions in good faith to extend the end date but the discussion period has expired without an agreement upon an extension of the end date. As a result, on January 22, 2024, SPNI issued a notice to ZEEL terminating the definitive agreements.”
Sony Group’s statement also said that it “does not anticipate any material impact on its consolidated financial results as a result of the termination of the definitive agreements for the merger.” But it seems likely that there will be some price to pay.
Variety understands that Sony will have to pay Zee a $100 million termination fee as part of the original agreement. Additionally, Zee shareholders could sue Sony, though they may just as likely sue ZEE’s management.
A separate statement from Sony in India struck an angrier tone. “Although we engaged in good faith discussions to extend the end date under the merger cooperation agreement, we were unable to agree upon an extension by the January 21 deadline.
After more than two years of negotiations, we are extremely disappointed that closing conditions to the merger were not satisfied by the end date,” it said. “We remain committed to growing our presence in this vibrant and fast-growing market and delivering world-class entertainment to Indian audiences.” The combination of ZEE and Culver Max Entertainment, formerly Sony Pictures
.
The website popstar.one is an aggregator of news from open sources. The source is indicated at the beginning and at the end of the announcement. You can
send a complaint on the news if you find it unreliable.