Sony Terminates $10 Billion Merger Agreements with Zee Entertainment

Sony Terminates $10 Billion Merger Agreements with Zee Entertainment

New Delhi: Culver Max Entertainment, previously known as Sony Pictures Networks India (SPNI), has formally terminated the merger agreements with Zee Entertainment, thereby preventing the formation of a potential $10 billion media powerhouse in India.

In an official statement, Sony Group Corporation, the parent entity of SPNI, declared the termination of the definitive agreements with Zee Entertainment Enterprises Ltd (ZEEL). The proposed merger, unveiled on December 22, 2021, had an initial completion target set before December 21, 2023, with an additional one-month grace period for regulatory clearances.

Despite receiving regulatory approvals from the Competition Commission of India (CCI), NSE, BSE, and the National Company Law Tribunal (NCLT) in Mumbai, the merger failed to materialize by the stipulated deadline. Sony attributed the termination to unmet closing conditions.

Following the one-month grace period, Sony issued a termination notice to ZEEL, which is owned by the Subhash Chandra family. It’s worth noting that ZEEL had requested a deadline extension on December 17, 2023, initially met with resistance from SPNI. However, SPNI eventually acquiesced to discussing the matter a day later.

The much-anticipated $10 billion merger, poised to reshape the Indian media landscape, has now been officially abandoned, representing a significant development in the industry.