Tripura News Point

Talks To Save The $10 Billion Merger Are Being Held By Zee And Sony: Report

<p>According to media reports on Tuesday, Zee Entertainment Enterprises Ltd (ZEEL) and Sony Group are apparently in talks to save their $10 billion merger.</p>
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<p>The media businesses are reportedly in talks to help salvage the $10 billion merger, which was called off by the Sony Group earlier in January, according to the Economic Times, which cited informed sources. According to the reports, over the last fifteen days, both firms have been holding discussions in Mumbai.</p>
<p>According to the article, Sony demanded that Zee’s MD and CEO, Punit Goenka, resign from his position as CEO of the combined firm. Goenka complied. The Japanese media group reportedly said that Goenka could only continue to serve as an advisor to the combined company.</p>
<p>According to the source, Zee will let Sony know within the next 24 to 48 hours whether it accepts the terms and conditions of the merger. Sony will withdraw its first application to the National Company Law Tribunal by the end of the week if the former objects to the conditions.</p>
<p>Notably, Sony terminated its partnership with ZEEL earlier in January to combine Culver Max Entertainment, previously known as Sony Pictures Network India, and BEPL (Bangla Entertainment Private Limited) to establish a new media firm in India.</p>
<p>The Japanese group filed an arbitration case with the Singapore International Arbitration Centre to demand a termination payment of Rs 748.5 crore, claiming ZEEL had broken the terms of the merger.</p>
<p>In contrast, ZEEL petitioned the National Company Law Tribunal, requesting that the tribunal order Sony Group to consummate the transaction. Additionally, the business launched a lawsuit to challenge the termination fee allegations made by the Sony Group to the Singaporean authorities.</p>
<p>The NCLT’s Mumbai bench had already approved the merger of BEPL and Culver Max Entertainment, two subsidiaries of the Sony Group, on August 10, 2023. If the deal had gone through, a $10 billion media company would have been born.</p>
<p>More than 70 TV stations, two video streaming services (ZEE5 and Sony LIV), and two movie studios (Zee Studios and Sony Pictures Films India) will all be owned by this merged media company. As a result, this combined company would become India’s biggest entertainment network.</p>