Sony-Zee Deal Fallout: What’s ahead for Sony India, the legal battles and more
Sony India CEO NP Singh assured employees that the company will actively pursue new possibilities for market presence after the failed Sony-Zee Entertainment deal.
Culver Max Entertainment, the subsidiary of Sony Corporation earlier known as Sony Pictures India, plans to pursue "organic and inorganic" opportunities to fortify its position in the domestic media market, as per an internal email sent to employees, the Economic Times reported. The memo was sent two days after the Sony-Zee Entertainment Enterprises (ZEEL) deal fell through.
"As we transition from this phase, I am, along with the senior management team, committed to setting the company up for a long-term, strong future. We will actively explore new organic and inorganic possibilities to strengthen our market presence," India CEO NP Singh sought to assure employees in the email.
Navigating Change for Future Growth, says Sony
Singh also told employees the change in plans would usher the company into a phase of growth and stressed the importance of innovation and leading changes in the media and entertainment industry rather than merely adapting to them.
"As we close the chapter on our proposed merger with ZEEL, I want to take a moment to talk to you—not just as your CEO but as someone who has been on this journey with you. This change in our plans allows us to step into a new phase of our story, which I believe is full of promise. Our immediate focus will be back on unleashing our full potential, continuing to craft content that not only engages our audience but also boosts subscriber growth and revenues, thereby nurturing a culture rooted in excellence, pivotal for our ongoing growth and success," Singh said.
"We've always been at our best when innovating and pushing the boundaries of what we can achieve. The M&E world is constantly changing, and our journey is not just about adapting to change; it's about leading it," he added.
Sony Executive Confident in Overcoming Challenges
Singh expressed confidence in the Sony India team's ability to overcome future challenges and achieve growth objectives and stated his optimism about the next phase.
"I express my deepest gratitude to each of you for your unwavering commitment and resilience. Your dedication is the driving force behind our success and the reason I have absolute faith in our bright future. Together, we have navigated challenges and celebrated triumphs, and this experience will be no different. We have a world of opportunities waiting for us, and I am excited to embark on this journey with you all. Here's to our shared future, the stories we will tell, and the history we will make," Singh said.
Legal Troubles Boil Over Post-Merger Fallout
On January 22, the proposed merger between Sony and Zee collapsed, leading to acrimony as the Japanese parent pulled the plug on the deal after two years in the making. The legal lines have been drawn cross-country in India and Singapore.
Sony sought a $90 million termination fee and invoked arbitration and legal actions against ZEEL for alleged breaches, potentially leading to a prolonged legal dispute. Zee, led by Punit Goenka, in turn, announced its intention to contest Sony’s claims.
Sony's Culver Max Entertainment and Bangla Entertainment (BEPL) have initiated arbitration proceedings against ZEEL at the Singapore International Arbitration Centre (SIAC). Zee has approached the National Company Law Tribunal (NCLT) in Mumbai, seeking implementation of the previously approved merger scheme.
Media lawyers tracking the development told the paper that the next steps in arbitration involve notifying the SIAC if the parties have already chosen arbitrators. If not, Sony will request the SIAC to set up the arbitration tribunal. The outcome of NCLT's decision will play a crucial role in the matter.
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First Published:25 Jan 2024, 01:58 PM IST
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