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Zee, Sony settle merger dispute, drop all claims, agree to withdraw all cases
- IBJ Bureau
- Aug 28, 2024
Zee Entertainment Enterprises and Sony Pictures Networks India on Tuesday said that they had settled their six-month-long dispute related to the failed $10-billion merger and had agreed to withdraw all claims against each other.
As a part of the “comprehensive non-cash settlement” between Zee and Culver Max Entertainment, both “have mutually agreed to withdraw all respective claims against each other in the ongoing arbitration at the SIAC (Singapore International Arbitration Center) and all related legal proceedings initiated in the NCLT (National Company Law Tribunal) and other forums,” said a joint statement.
Both Zee and Sony had claimed a termination fee of $90 million (around Rs 748.7 crore) from each other for not complying with the Merger Cooperation Agreement signed in December 2021.
Sony had moved before the SIAC immediately two days after the termination of the deal, saying that Zee had not satisfied the merger conditions, initiated arbitration proceedings and claimed a termination fee of $90 million.
This was contested by Zee before the SIAC, which had denied any interim relief to the Sony Group against the Indian broadcaster.
Zee had also moved the NCLT, seeking implementation of the proposed merger and had later withdrawn its plea.
Later in May, Zee had terminated the MCA by issuing a letter dated May 23, 2024, and it had also sought a termination fee of $90 million from two Sony Group entities – Sony Pictures Networks India, now known as Culver Max Entertainment, and Bangla Entertainment.
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