Not unusual, it takes many milestones to conclude such deals successfully: Anupriya Acharya on Zee-Sony merger termination

After the Culver Max Entertainment (CME), erstwhile Sony Pictures Networks India, merger with Zee Entertainment Enterprises (ZEEL) was called off, Anupriya Acharya, South Asia CEO, Publicis Groupe, said that such developments are not unusual as far as mergers and acquisitions (M&A) go, because it takes many milestones to conclude such deals successfully.

Culver Max Entertainment (CME), erstwhile Sony Pictures Networks India, on Monday confirmed that it issued notice to Zee Entertainment Enterprises (ZEEL) terminating the agreement dated December 22, 2021, to merge ZEEL and CME.

Acharya said, “The M&A deals, especially those involving behemoths, are complex and challenging because of the scale, and complexities. Plus the two parties need to agree on the objectives of the M&A activity, shared vision and the future of the merged entity, cultural and integration issues etc. Something that looks good on paper may not necessarily get concluded.”

“Sony Group has formally notified Zee that it is calling off the merger. The fruition of which would have created a formidable entertainment giant. However, such developments are not unusual as far as M&A goes, because it takes many milestones to conclude such deals successfully,” she added.

The termination comes after a deadlock between the firms regarding the leadership of the combined entity. Sony had reportedly objected to the condition in the term sheet to appoint Zee CEO Punit Goenka as CEO of the merged company amid an investigation into his conduct by India’s capital markets regulator.

In September 2021, Sony Pictures Networks India and ZEEL entered into a non-binding term sheet to bring together their linear networks, digital assets, production operations and programme libraries.

Subsequently, the two parties signed a definitive agreement for their merger in December 2022.

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