Zee Seeks $90 Million Termination Fee from Sony After Merger Collapse
Zee Entertainment Enterprises Ltd (ZEEL) has demanded a termination fee of USD 90 million from Sony Group entities, Culver Max Entertainment and Bangla Entertainment, following the collapse of their USD 10 billion merger deal. According to a regulatory filing by ZEEL on Thursday, the company terminated the Merger Cooperation Agreement (MCA) on May 23, 2024, citing breaches by the Sony entities.
The merger, initially agreed upon on December 22, 2021, was intended to create a significant media entity. Despite approval from the Mumbai bench of the National Company Law Tribunal in August 2023, Sony Group Corporation called off the deal in January 2024, alleging ZEEL’s failure to meet merger conditions and sought arbitration at the Singapore International Arbitration Centre (SIAC). ZEEL contested this, leading to the SIAC denying interim relief to Sony against the Indian broadcaster.
Following the termination, ZEEL has demanded that Culver Max and Bangla Entertainment pay the USD 90 million termination fee stipulated in the MCA. This development comes after ZEEL’s withdrawal of its plea for merger implementation before the National Company Law Tribunal. The situation underscores ongoing legal and financial disputes between the entities over the failed merger.
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