Sony and Zee reach settlement and end merger disputes
Zee Entertainment Enterprises Ltd and Sony’s Culver Max Entertainment Pvt. Ltd, operating as Sony Pictures Networks India (SPNI), along with Sony group company Bangla Entertainment Pvt. Ltd, have announced a comprehensive settlement to resolve all disputes relating to their previously planned merger.
The agreement ends legal proceedings before the Singapore International Arbitration Center and the National Company Law Tribunal (NCLT) in India. As part of the settlement, both companies agreed to drop all claims against each other and terminate the Composite Scheme of Arrangement, which had been filed with regulators.
The non-cash settlement provides that neither party has any outstanding obligations or liabilities to the other. “The settlement stems from a mutual understanding between the companies to independently pursue future growth opportunities with renewed purpose and a focus on the evolving media and entertainment landscape, which means the final resolution of all disputes,” the companies said in a statement .
A prominent player in the Indian media space, Zee has a global reach of over 1.3 billion people across 190 countries. SPNI operates a portfolio of popular channels including Sony Entertainment Television, Sony MAX and Sony SAB, among others.
The proposed $10 billion merger between the two entities was halted earlier this year after more than two years of negotiations and regulatory scrutiny. Legal disputes followed.
In recent months, both companies have unveiled several changes. Zee reduces its workforce by 15% and implements a leaner management structure. Meanwhile, Sony’s India head NP Singh is stepping down and former Disney executive Gaurav Banerjee is taking over. Sony also recently unveiled a new layer of management reshuffling.
The Indian streaming and TV landscape continues to face a potentially bigger realignment. A merger between Indian media companies Reliance and Disney, with a nominal value of $8.5 billion, is still planned. But it could face antitrust scrutiny over cricket rights.
