Sony-Zee $10bn merger deal terminated

Zee and Sony merger deal. (Photo Source: Twitter)

Sony Pictures and Zee Entertainment Enterprises Limited, which are among two of the most prominent broadcasting services in India, have called off their proposed merger deal, valued at US$10 billion. The actual reason behind the closure of the deal is said to be the unsatisfactory outcome of the negotiations that took between the merging parties over the course of two years. With this move, the output company was going to be the biggest television network of the country, which eventually didn’t come to fruition.

The mode of announcement to the termination of the agreement was done by Sony through an official notice to the Zee and Sony’s India subsidiary i.e., Sony Pictures Networks India Private Limited. The statement, which was made public soon after the announcement, read that the involved parties engaged in many propositions, however, either of the parties weren’t fully satisfied with the discussions within the stipulated time, which eventually led to the merger being denied.

“Although we engaged in good faith discussions to extend the end date under the merger cooperation agreement, we were unable to agree upon an extension by the January 21 deadline. After more than two years of negotiations, we are extremely disappointed that closing conditions to the merger were not satisfied by the end date,” Sony’s statement read as per Moneycontrol.

Zee likely to lose its rights for ICC tournaments

Zee chief executive officer (CEO) and managing director (MD) Punit Goenka also came forward and expressed his disappointment after he came to know that the merger stands terminated. Reaching Ayodhya for Lord Rama Temple’s Pran Pratishtha Ceremony, Goenka assured stakeholders to continue the work towards strengthening the media and entertainment industry in India through Zee, while praying to Ram.

“As I arrived at Ayodhya early this morning for the auspicious occasion of Pran Pratishtha, I received a message that the deal that I have spent 2 years envisioning and working towards had fallen through, despite my best and most honest efforts. I believe this to be a sign from the Lord. I resolve to move ahead positively and work towards strengthening Bharat’s pioneering M&E Company, for all its stakeholders. Jai Shri Ram,” Goenka posted on X.

Meanwhile, the International Cricket Council had previously invited bidders for linear television broadcast of its marquee tournaments for the upcoming cycle. Subsequently, Zee along with Disney India, had put in the bid to award themselves with the rights for premier cricketing events held by the apex cricket governing body. But with the cancellation of the merger, Zee does not have enough reserves on its financials to be able to fulfil the requisitions of the bid.

Meanwhile, Sony and Zee both have the broadcasting rights for the ongoing ILT20 2024, which was given in a hope to give wider reach to the TV viewership of the event. However, this might well be the last event broadcasted together by both the parties on their respective sporting networks.