ZEE and Sony Settle Disputes, Withdraw $10 Billion Merger Claims

ZEE Entertainment Enterprises Ltd and Sony Pictures Networks India have settled disputes related to their failed USD 10-billion merger. The companies will withdraw all claims against each other and pursue future growth independently. The agreement resolves all issues through a non-cash settlement, concluding disputes initiated in various legal forums.

ZEE Entertainment Enterprises Ltd and Sony Pictures Networks India announced on Tuesday that they have resolved disputes stemming from their failed USD 10-billion merger. As part of the settlement, both companies have agreed to withdraw all legal claims against each other.

The decision marks a new chapter for both entities, enabling them to focus on future growth opportunities with renewed purpose. In a joint statement, the companies emphasized the resolution as a final step in ending all outstanding disputes.

According to the statement, ZEE Entertainment Enterprises Ltd and Culver Max Entertainment Pvt. Ltd. (CMEPL) finalized a comprehensive non-cash settlement that addresses issues related to their merger cooperation agreement. Both parties will withdraw claims in the Singapore International Arbitration Centre (SIAC) and various legal proceedings in the National Company Law Tribunal (NCLT).

Additionally, the companies will inform regulatory authorities of the withdrawal of their respective composite schemes of Arrangement from NCLT. The settlement follows Sony's decision in January to pull out of the merger due to unmet ''closing conditions'' by ZEE, leading to protracted litigation.

(With inputs from agencies.)