BMA has learnt that Zee Entertainment Enterprises and Culver Max Entertainment, operating as Sony Pictures Networks India, have mutually decided to terminate their US$10bn merger agreement.
In a joint statement, the companies, including Sony’s group, Bangla Entertainment, announced they had reached a “comprehensive non-cash settlement,” amicably resolving the disputes that arose after the merger collapsed earlier this year. The settlement includes withdrawing all respective claims against each other, ending arbitration proceedings at the Singapore International Arbitration Centre and resolving other tribunal-related issues.
Both companies stated they have no further obligations to each other and will independently pursue future growth opportunities.
The merger was originally intended to combine Zee and Sony’s assets in response to the rapidly changing and consolidating Indian media market, which has seen mergers such as Disney and Reliance’s Viacom18 and the rise of local streaming platforms like Prime Video and Netflix.
The deal would have given Sony a 53% stake in the combined entity, with Zee holding the remaining 47% and Zee’s MD and CEO, Punit Goenka, slated to lead the operation. However, disagreements over leadership and regulatory challenges led Sony to withdraw from the agreement in January.
