Sony Group Corp. is said to have withdrawn the agreement to merge its India operations with Zee Entertainment Enterprises Ltd. from a local company court, taking the final step in scrapping a two-year-old plan that sought to create a $10 billion media giant.
The Japanese entertainment firm made multiple filings to India’s National Company Law Tribunal (NCLT) on Thursday to pull out of the merger pact with Zee, people familiar with the situation said, asking not to be identified as they are not authorized to speak publicly, Bloomberg reported yesterday.
Representatives for Sony and Zee didn’t respond to phone calls and emails seeking comments.
While the court filings officially bring the curtain down on the long-drawn saga that was beset by delays, drama over who’ll lead the merged entity, and a regulatory probe on Zee’s founders, legal wrangles will likely continue.
Sony had sent the termination notice to Zee on January 22 for failing to meet the merger agreement conditions and sought $90 million in break-up fees. Zee “categorically” denied that it had breached the pact announced in December 2021.
The deal collapse has also left both companies more vulnerable while their rivals bulk up. Reliance Industries Ltd. and Walt Disney Co. announced a merger of their India media businesses on Wednesday, creating a $8.5 billion behemoth that will be the largest broadcasting and digital company in the world’s most populous market.