Zee Entertainment Enterprises and Sony Pictures Networks India have agreed to settle all their disputes regarding their failed $10 billion merger deal. The two companies have decided to drop all their compensation claims against one another.
“ZEE Entertainment Enterprises Ltd. (ZEE), Culver Max Entertainment Pvt. Ltd. (CMEPL) operating as Sony Pictures Networks India (SPNI), together with its group company Bangla Entertainment Pvt. Ltd. (BEPL), have arrived at a comprehensive non-cash settlement, amicably resolving all disputes related to the Merger Co-operation Agreement and the Composite Scheme of Arrangement,” ZEE Entertainment and SPNI said in a joint statement.
“As part of the settlement, the companies have mutually agreed to withdraw all respective claims against each other, in the ongoing arbitration at the Singapore International Arbitration Centre, and all related legal proceedings initiated in the National Company Law Tribunal (NCLT) and other forums. The companies will also withdraw the respective Composite Schemes of Arrangement from the NCLT and inform the relevant regulatory authorities,” the statement added.
Both Zee and Sony had claimed a termination fee of $90 million (around ₹748.7 crore) from each other for not complying with the merger cooperation agreement (MCA).
Sony had moved before the Singapore International Arbitration Center (SIAC) immediately two days after the termination of the deal, saying Zee did not satisfy the merger conditions, initiated arbitration proceedings and claimed a termination fee of $90 million. This was contested by Zee before the SIAC, which denied any interim relief to the Sony group against the Indian broadcaster.
Zee also moved the National Company Law Tribunal (NCLT) seeking implementation of the proposed merger and later withdrew its plea. Later in May, Zee terminated MCA by issuing a letter dated May 23, 2024, and it also sought a termination fee of $90 million from two Sony Group entities- Sony Pictures Networks India (SPNI), now known as Culver Max Entertainment, and Bangla Entertainment (BEPL).
“Under the terms of the settlement, none of the parties will have any outstanding or continuing obligations or liabilities to the other. The settlement stems from a mutual understanding between the companies to independently pursue future growth opportunities with a renewed purpose and focus on the evolving media & entertainment landscape, signifying the definitive conclusion of all disputes,” the statement further said.
