ZEEL and Sony Settle Dispute, Withdraw USD 10-Billion Merger Feud

ZEE Entertainment Enterprises Ltd (ZEEL) and Sony Pictures Networks India have resolved their six-month-long dispute related to their failed USD 10-billion merger. Both companies have agreed to withdraw all claims against each other, ending all related legal proceedings and arbitration cases, and will now pursue independent growth opportunities.

ZEE Entertainment Enterprises Ltd (ZEEL) and Sony Pictures Networks India have settled their six-month-long dispute over a failed USD 10-billion merger. Both companies will withdraw all claims against each other, including arbitration proceedings in the Singapore International Arbitration Center (SIAC) and legal cases in the National Company Law Tribunal (NCLT).

ZEEL and Sony had initially agreed to a merger in December 2021 but later contested each other's claims of a USD 90 million termination fee for not complying with the Merger Cooperation Agreement (MCA). In January, Sony withdrew from the merger, citing unmet conditions.

The settlement signifies a mutual understanding to independently pursue future growth opportunities. ZEEL, while managing financial hurdles, reported a net profit of Rs 118 crore in the first quarter of this fiscal year.

(With inputs from agencies.)