Zee Entertainment Enterprises Ltd and Sony‘s Culver Max Entertainment Pvt. Ltd, operating as Sony Pictures Networks India (SPNI), along with Sony group company Bangla Entertainment Pvt. Ltd, have announced a comprehensive settlement to resolve all disputes related to their previously planned merger.
The agreement brings an end to the legal proceedings that had been ongoing at the Singapore International Arbitration Centre and the National Company Law Tribunal (NCLT) in India. As part of the settlement, both companies have agreed to withdraw all claims against each other and to terminate the Composite Scheme of Arrangement that had been filed with regulatory authorities.
The non-cash settlement stipulates that neither party will have any outstanding 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 and entertainment landscape, signifying the definitive conclusion of all disputes,” the companies said in a statement.
Zee, a prominent player in the Indian media space, boasts a global reach of over 1.3 billion people across 190 countries. SPNI manages a portfolio of popular channels including Sony Entertainment Television, Sony MAX and Sony SAB, among others.
The proposed $10 billion merger between the two entities was halted earlier this year after more than two years of negotiations and regulatory scrutiny. Legal disputes followed.
In recent months, both companies have revealed several changes. Zee is cutting its workforce by 15% and is implementing a leaner management structure. Meanwhile, Sony’s India head NP Singh is stepping down and former Disney executive Gaurav Banerjee is taking over. Sony also revealed another layer of management reshuffle recently.
The Indian streaming and TV landscape still faces potentially bigger reshuffle. A merger between the Indian media businesses of Reliance and Disney, with a nominal value of $8.5 billion, is still on the cards. But it could face anti-trust scrutiny over cricket rights.
Source Agencies
