Sony confirms calling off merger deal with Zee

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

“Although we engaged in good faith discussions to extend the end date under the merger cooperation agreement, we were unable to agree upon an extension by the January 21 deadline. After more than two years of negotiations, we are extremely disappointed that closing conditions to the merger were not satisfied by the end date, the company said in a statement.

“We remain committed to growing our presence in this vibrant and fast-growing market and delivering world-class entertainment to Indian audiences,” the statement 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.

Notably, ZEEL on Friday said it is continuing to work towards a successful closure of its USD 10 billion merger with Sony, amid reports that the Japanese entity's board meeting to take a call on the fate of the protracted deal.

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.

Info@BestMediaInfo.com