Sony called off the merger with ZEEL last month
While the mega-merger between Sony and Zee Entertainment has fallen through, Sony’s Indian division remains optimistic about its future in the country’s media landscape, acknowledging its potential for growth. Sony expressed its commitment to exploring further opportunities in India following the unsuccessful merger with ZEEL.
Hiroki Totoki, President, COO, and CFO of Sony, stated that the company is actively seeking alternative options, including potential replacements for the failed merger plan and organic growth prospects in India. He emphasized India’s significant growth potential as a market and reiterated Sony’s intention to invest in it.
Regarding the investment originally earmarked for the merger, Totoki clarified that it would not impact Sony’s capital allocation or investment strategy. As of now, there are no specific plans regarding this investment.
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Sony’s strategy in India includes pursuing organic growth through Culver Max Entertainment (previously known as Sony Pictures Network India), as mentioned in an investor call.
The proposed merger between Sony and ZEEL involved a $1.5 billion investment from the Japanese media conglomerate. Had the merger succeeded, it would have formed the largest media entity in India, valued at over $10 billion.
Sony-ZEEL merger terminated
Sony recently issued a notice to Zee Entertainment Enterprises (ZEEL), officially ending the proposed merger between the company and Sony’s two Indian entities, Culver Max Entertainment and Bangla Entertainment Private Limited (BEPL).
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In the termination notice, Sony accused Zee of failing to fulfill the conditions outlined in the merger agreement. Subsequently, Sony initiated arbitration proceedings before the Singapore International Arbitration Centre (SIAC), seeking a termination fee of USD 90 million (approximately ₹748.5 crore).
In response, Zee refuted all allegations made by Sony and took the matter to the National Company Law Tribunal (NCLT), filing a petition requesting the Sony Group to execute the merger scheme as originally planned.
