Zee and Sony Reach Settlement Agreement
Zee and sony Reach Settlement Agreement
Zee Entertainment Enterprises Ltd’s share price surged by up to 15% on august 27 following the announcement of a settlement agreement with sony India regarding the termination of their merger. Under the agreement, both companies will withdraw all claims against each other. Zee will resolve disputes related to transactions with CMEPL and BEPL, with the settlement involving the withdrawal of claims for a $90 million termination fee, damages, litigation costs, and other associated expenses. This agreement also covers claims related to the costs of business disposition, spin-offs, or liquidation.
During the afternoon trading session, Zee’s stock peaked at Rs 154.9 before settling at Rs 147.7, marking a 10% increase from the previous closing price.
Background on Zee-Sony Merger
On august 10, 2023, the mumbai bench of the NCLT approved Zee’s plan to merge with BEPL and Culver Max Entertainment, both sony group companies. This merger had the potential to form a media powerhouse valued at USD 10 billion. However, sony terminated the merger on january 22, citing Zee’s failure to meet certain financial conditions. Zee accused sony of acting in “bad faith” in canceling the deal.
Had the merger proceeded, it would have created India’s largest entertainment network, encompassing over 70 tv channels, two video streaming services (ZEE5 and sony LIV), and two movie studios.
Zee Entertainment Enterprises Ltd’s share price surged by up to 15% on august 27 following the announcement of a settlement agreement with sony India regarding the termination of their merger. Under the agreement, both companies will withdraw all claims against each other. Zee will resolve disputes related to transactions with CMEPL and BEPL, with the settlement involving the withdrawal of claims for a $90 million termination fee, damages, litigation costs, and other associated expenses. This agreement also covers claims related to the costs of business disposition, spin-offs, or liquidation.
During the afternoon trading session, Zee’s stock peaked at Rs 154.9 before settling at Rs 147.7, marking a 10% increase from the previous closing price.
Background on Zee-Sony Merger
On august 10, 2023, the mumbai bench of the NCLT approved Zee’s plan to merge with BEPL and Culver Max Entertainment, both sony group companies. This merger had the potential to form a media powerhouse valued at USD 10 billion. However, sony terminated the merger on january 22, citing Zee’s failure to meet certain financial conditions. Zee accused sony of acting in “bad faith” in canceling the deal.
Had the merger proceeded, it would have created India’s largest entertainment network, encompassing over 70 tv channels, two video streaming services (ZEE5 and sony LIV), and two movie studios.