Zee-Sony merger failure: Final nail in coffin as Sony formally withdraws $10 billion merger agreement with Zee from NCLT
The mega-merger plan to create a $10 billion media giant officially came to an end after Sony Group Corp formally withdrew the agreement to merge its India operations with Zee Entertainment Enterprises from the National Company Law Tribunal (NCLT), reported Bloomberg.
Sony Group made multiple filings to the NCLT on February 29 to withdraw the merger pact with Zee, people familiar with the matter told Bloomberg.
Till now, there has been no official confirmation by any of the representatives from Sony and Zee. The submission of legal papers to the NCLT has put an end to the long-drawn saga that was marred by delays, drama over who will lead the merged entity, and a regulatory probe against Zee’s founders.
On January 22, Sony sent the termination notice to Zee for not standing with the merger agreement conditions and sought $90 million in break-up fees. In response, Zee “categorically” denied that it had breached the pact announced in December 2021.
Amid Zee-Sony merger failure, Reliance seals deal with Disney
While the collapse of the Zee-Media merger left both companies coping with the losses, Reliance Industries and Walt Disney Co. announced a merger of their India media businesses on Wednesday. The deal will create an $8.5 billion entity that will be the largest broadcasting and digital company in the world’s most populous market.
After the merger collapse, Sony will also review its strategy in the country after Disney winds up its India media business into a joint venture with Reliance, the people told Bloomberg.
The Reliance-Disney deal is also set to hurt other industry players including Zee. “Content producers and advertisers are likely to gravitate toward the Reliance-Disney entity, which will also cater to the largest set of audience,” Bloomberg quoted Pulkit Chawla, a sector analyst with Emkay Global Financial Services Ltd.
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Published: 29 Feb 2024, 05:55 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.