Zee Entertainment disclosed on January 24 that it has taken legal action by approaching the National Company Law Tribunal (NCLT) against Sony‘s unilateral decision to cancel the proposed merger. Additionally, Zee Entertainment has initiated legal proceedings to dispute Sony’s insistence on a $90 million (approximately ₹748.5 crore) termination fee, which is under consideration by the Singapore International Arbitration Centre (SIAC).
In a regulatory filing to the stock exchanges, Zee Entertainment Ltd revealed that it has requested Culver Max and Bangla Entertainment Pvt Ltd (BEPL) to promptly revoke the termination and affirm their commitment to fulfilling their obligations to execute the merger scheme, which had received approval from the NCLT. The company has approached the Mumbai bench of NCLT, seeking directives to implement the merger scheme. Simultaneously, Zee Entertainment has commenced legal action to contest the claims made by Culver Max and BEPL in the ongoing arbitration proceedings before the SIAC, as indicated in the filing.
Zee Entertainment emphasized in its exchange filing that it has urged Culver Max and BEPL to withdraw the termination immediately and confirm their commitment to fulfilling the obligations to implement the merger scheme.
Sony had announced the termination of the merger deal two days prior, citing unmet “closing conditions” and the inability to reach an agreement on extending the deadline beyond January 21, despite good faith discussions with Zee. Sony expressed disappointment after more than two years of negotiations and affirmed its dedication to expanding its presence in the vibrant and rapidly growing market.
The merger agreement, signed on December 22, 2021, outlined the consolidation of Zee, Sony Pictures Networks India (now referred to as Culver Max), and Bangla Entertainment Pvt Ltd into a unified entity within 24 months.
Following Sony’s termination of the deal, Zee’s stock experienced a significant decline in the market. On January 23, it recorded the highest single-day drop of 30.50%, closing at ₹152.50. However, on the subsequent trading session on January 24, Zee’s share price showed a partial recovery, settling at ₹166.35 on the BSE.
About Zee Entertainment:
In 1992, India was introduced to its inaugural private satellite TV channel, marking the inception of ZEE’s journey. Over the years, ZEE has evolved into a global entertainment powerhouse, captivating a vast audience of 1.3 billion viewers worldwide across both traditional linear and digital platforms. Presently, ZEE stands as the premier destination for entertainment on a global scale, driven by an integrated team committed to producing and delivering exceptional content.
About Sony Entertainment:
Sony Entertainment Television is a 24-hour Hindi General Entertainment Channel, delivering comprehensive family entertainment. Catering to a broad audience, the channel dynamically addresses diverse viewer preferences by offering a wide range of genres, including thrillers, dramas, events, comedies, game shows, dance shows, and more.
The channel’s brand belief revolves around the idea that when relationships transform into partnerships, life takes a positive turn and advances. In this collaborative spirit, differences dissolve, fostering greater appreciation and shared laughter. The result is a mutually beneficial outcome for all parties involved. Through skillful storytelling, Sony Entertainment Television continues to dominate the entertainment landscape with narratives that are not only relevant but also engaging and thoroughly entertaining.
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