ZEE Entertainment and Sony Pictures reach amicable settlement over merger disputes

Zee, Sony scrap $10 bn merger deal amicably

ZEE Entertainment Enterprises Ltd. (ZEE) and Culver Max Entertainment Pvt. Ltd. (CMEPL), which operates as Sony Pictures Networks India (SPNI), alongside its group company Bangla Entertainment Pvt. Ltd. (BEPL), have announced a comprehensive non-cash settlement. The agreement resolves all disputes related to their merger cooperation and composite scheme of arrangement.

According to a statement from ZEE, the settlement includes the mutual withdrawal of all claims in the ongoing arbitration at the Singapore International Arbitration Centre and all related legal proceedings before the National Company Law Tribunal (NCLT) and other forums.

Settlement details: Withdrawal of legal claims by ZEE and Sony Pictures

According to the statement, the companies will retract their respective composite schemes of arrangement from the National Company Law Tribunal (NCLT) and notify the relevant regulatory authorities. The terms of the settlement stipulate that no party will have any remaining obligations or liabilities toward the others.

Following the announcement, ZEE shares surged by up to 15 percent, reaching an intra-day high of Rs.154.90, before settling at Rs.147.70—an increase of 10 percent from the previous close.

Earlier this year, Sony Pictures Networks India (SPNI) terminated a proposed $10 billion merger deal with ZEE Entertainment, nullifying the December 2021 agreement. Sony had demanded a termination fee of $90 million, citing alleged breaches by ZEE Entertainment. In response, ZEE sought a similar $90 million fee from SPNI and its affiliate, Bangla Entertainment Pvt. Ltd. (BEPL), on May 23 for withdrawing from the merger.

The $10 billion merger between Zee and Sony was canceled in January due to a dispute over leadership. Zee’s MD and CEO Punit Goenka, initially slated to lead the merged entity, faced opposition from Sony after a SEBI investigation. The disagreement led to legal battles, with both companies accusing each other of breaching the agreement.

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