Zee-Sony merger failure: Final nail in coffin as Sony formally withdraws $10 billion merger agreement with Zee from NCLT

Sony officially withdraws from the $10 billion media merger with Zee Entertainment in India, ending a long saga of delays and drama. Legal wrangles are likely to continue after the termination notice is sent by Sony in response to Zee's denial of breach.

Written By Sharmila Bhadoria
Updated29 Feb 2024, 06:12 PM IST
Sony Group Corp is said to have officially withdrawn the agreement to merge its India operations with Zee Entertainment Enterprises from the NCLT.
Sony Group Corp is said to have officially withdrawn the agreement to merge its India operations with Zee Entertainment Enterprises from the NCLT. (AFP)

The mega-merger plan to create a $10 billion media giant officially came to an end after Sony Group Corp formally withdrew the agreement to merge its India operations with Zee Entertainment Enterprises from the National Company Law Tribunal (NCLT), reported Bloomberg.

Sony Group made multiple filings to the NCLT on February 29 to withdraw the merger pact with Zee, people familiar with the matter told Bloomberg.

Till now, there has been no official confirmation by any of the representatives from Sony and Zee. The submission of legal papers to the NCLT has put an end to the long-drawn saga that was marred by delays, drama over who will lead the merged entity, and a regulatory probe against Zee’s founders.

On January 22, Sony sent the termination notice to Zee for not standing with the merger agreement conditions and sought $90 million in break-up fees. In response, Zee “categorically” denied that it had breached the pact announced in December 2021.

Amid Zee-Sony merger failure, Reliance seals deal with Disney

While the collapse of the Zee-Media merger left both companies coping with the losses, Reliance Industries and Walt Disney Co. announced a merger of their India media businesses on Wednesday. The deal will create an $8.5 billion entity that will be the largest broadcasting and digital company in the world’s most populous market.

After the merger collapse, Sony will also review its strategy in the country after Disney winds up its India media business into a joint venture with Reliance, the people told Bloomberg.

The Reliance-Disney deal is also set to hurt other industry players including Zee. "Content producers and advertisers are likely to gravitate toward the Reliance-Disney entity, which will also cater to the largest set of audience,” Bloomberg quoted Pulkit Chawla, a sector analyst with Emkay Global Financial Services Ltd.

Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

MoreLess
First Published:29 Feb 2024, 06:12 PM IST
Business NewsCompaniesNewsZee-Sony merger failure: Final nail in coffin as Sony formally withdraws $10 billion merger agreement with Zee from NCLT

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Tata Steel share price

    149.70
    07:18 PM | 1 NOV 2024
    1.05 (0.71%)

    Indian Oil Corporation share price

    145.00
    07:19 PM | 1 NOV 2024
    2.3 (1.61%)

    Tata Power share price

    445.20
    07:19 PM | 1 NOV 2024
    5.15 (1.17%)

    Bandhan Bank share price

    183.65
    07:10 PM | 1 NOV 2024
    1.4 (0.77%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    Rainbow Childrens Medicare share price

    1,545.00
    06:59 PM | 1 NOV 2024
    -67.25 (-4.17%)

    ICICI Securities share price

    833.45
    06:59 PM | 1 NOV 2024
    -32.85 (-3.79%)

    Vijaya Diagnostic Centre share price

    966.70
    06:59 PM | 1 NOV 2024
    -30.35 (-3.04%)

    Narayana Hrudayalaya share price

    1,235.60
    06:59 PM | 1 NOV 2024
    -36.75 (-2.89%)
    More from Top Losers

    Brigade Enterprises share price

    1,244.80
    07:19 PM | 1 NOV 2024
    71.75 (6.12%)

    PCBL share price

    432.15
    07:17 PM | 1 NOV 2024
    21.35 (5.2%)

    Piramal Pharma share price

    281.85
    07:17 PM | 1 NOV 2024
    13.45 (5.01%)

    Jubilant Pharmova share price

    1,273.00
    06:59 PM | 1 NOV 2024
    60.65 (5%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      80,565.000.00
      Chennai
      80,571.000.00
      Delhi
      80,723.000.00
      Kolkata
      80,575.000.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.92/L0.00
      Chennai
      101.23/L0.00
      Kolkata
      104.95/L0.00
      New Delhi
      94.77/L0.00

      Popular in Companies

        HomeMarketsloanPremiumMint Shorts