Sony Calls Off $10 Billion Merger With Indian TV Giant Zee Entertainment Enterprises
variety.comSony Group Corporation has ended its more than two-year attempt to merge its TV and streaming businesses in India with local giant Zee Entertainment Enterprises Limited.
In a statement, issued Monday, Sony Group said: “The merger did not close by the end date as, among other things, the closing conditions to the merger were not satisfied by then. {Sony Pictures Networks India] has been engaged in discussions in good faith to extend the end date but the discussion period has expired without an agreement upon an extension of the end date.
As a result, on January 22, 2024, SPNI issued a notice to ZEEL terminating the definitive agreements.” Sony Group’s statement also said that it “does not anticipate any material impact on its consolidated financial results as a result of the termination of the definitive agreements for the merger.” But it seems likely that there will be some price to pay.
Variety understands that Sony will have to pay Zee a $100 million termination fee as part of the original agreement. Additionally, Zee shareholders could sue Sony, though they may just as likely sue ZEE’s management.
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