Zee, Sony India end legal dispute over scrapped $10 billion merger

Mangalore Today News Network

New Delhi, August 27, 2024: Zee Entertainment announced on Tuesday that it has reached a settlement agreement with Culver Max Entertainment Private Limited (formerly Sony India) and Bangla Entertainment Private Limited, resolving all disputes between the parties.

As part of this settlement, all claims and applications filed at the Singapore International Arbitration Centre (SIAC) will be withdrawn.

Following this announcement, Zee’s shares surged as much as 15% before settling 11.49% higher on the BSE at Rs 150.90.

According to information submitted to stock exchanges, the companies will also withdraw their respective Composite Schemes of Arrangement from the National Company Law Tribunal (NCLT) and notify relevant regulatory authorities, thereby formally ending their planned $10 billion merger.

Both parties have agreed to relinquish their rights to file any further claims or counterclaims related to the merger and the associated transaction documents, including its termination and execution.

The settlement covers the withdrawal of all claims, including the $90 million termination fee, as well as damages, litigation expenses, and other costs such as those related to hive-offs, spin-offs, and winding-up processes.

Earlier in April, Zee had withdrawn its merger implementation application from the NCLT against Culver Max Entertainment to focus on pursuing claims against Sony in arbitration proceedings at SIAC and other forums.

The planned Zee-Sony merger, initially approved by the NCLT’s Mumbai bench on August 10, 2023, would have created a media giant valued at $10 billion, combining over 70 TV channels, two streaming platforms (ZEE5 and Sony LIV), and two movie studios (Zed Studios and Sony Pictures Films India).