ZEE and Sony Networks Resolve Merger Dispute Amicably

ZEE Entertainment and Sony Networks have reached a non-cash settlement to resolve disputes over their merger agreement. The companies have agreed to withdraw all claims and ongoing legal actions, including arbitration in Singapore and filings with NCLT, signaling a mutual decision to pursue separate growth opportunities.

ZEE Entertainment Enterprises and Culver Max Entertainment, known as Sony Pictures Networks India, along with Bangla Entertainment, have resolved all disputes related to their merger agreement. The comprehensive non-cash settlement sees the companies withdrawing all respective claims in ongoing arbitration at the Singapore International Arbitration Centre, as well as other legal proceedings initiated in the National Company Law Tribunal (NCLT) and various forums, according to a statement issued by Zee to stock exchanges on Tuesday.

The stock exchange filing revealed that, as part of the settlement, the companies will also withdraw their respective composite schemes of arrangement from the NCLT and inform the relevant regulatory authorities. This settlement ensures that none of the parties will have any outstanding obligations or liabilities toward each other.

The filing further noted that the settlement is based on a mutual decision to independently pursue future growth opportunities with renewed focus on the rapidly evolving media and entertainment landscape. Sony Pictures had previously terminated the USD 10-billion merger deal with Zee Entertainment and sought a USD 90 million termination fee earlier this year, leading to multiple disputes that have now been settled amicably.

In a notice issued to Zee, Sony had called off the December 22, 2021, agreement to merge with Zee, leading to a series of disputes across various forums. These disputes have now been amicably resolved, as confirmed by the companies. (ANI)

(With inputs from agencies.)