Zee-Sony $10B merger ends, notice to terminate deal cites unmet conditions

Sony Group Corp has officially notified Zee Entertainment Enterprises Ltd. it plans to call off the $10 billion merger between its India unit and the media network, news agency Bloomberg reported on January 22.

“The Japanese entertainment giant sent a termination letter to Zee early on Monday, January 22 and is expected to disclose it to the exchange later,” Bloomberg said, citing people familiar with the development.

The announcement, however, is not yet public. CNBC-TV18 is awaiting comments on the development. The disclosure has not been made on the exchanges yet.

According to the report, Sony has cited conditions of the merger agreement not being met as the reason for the termination.

The development comes three days after Zee, in a regulatory filing, had said it was continuing to work towards a successful closure of its $10 billion merger with Culver Max Entertainment, formerly known as Sony Pictures Networks India.

“We wish to reiterate that the company is committed to the merger with Sony and is continuing to work towards a successful closure of the proposed merger and is engaging in good faith negotiations with Sony to discuss the extension of the date required to make the Scheme effective, by a reasonable period,” it had said on January 19.

Bloomberg had earlier reported Sony was looking to call off the merger as the two sides were unable to decide on the leadership of the merged entity.

The $10 billion merger discussion was initiated in 2021. Originally slated for completion by December 21, 2023, Zee sought a deadline extension, a request to which Sony agreed.

However, the latest development to scrap the agreed-upon merger after a 30-day grace period ended over the weekend when the two sides couldn’t reach an agreement on a deadline set in late December. CNBCTV18