Sony India & ZEE Entertainment Settle Disputes Over Failed $10B Merger

ZEE Entertainment Enterprises and Sony’s Culver Max Entertainment have resolved their disputes related to their failed merger.

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A joint statement released this morning said the parties, including Sony’s group company Bangla Entertainment, had arrived at a “comprehensive non-cash settlement, amicably resolving” issues that resulted from the collapse of the merger earlier this year.

As part of the agreement, the companies have agreed to “withdraw all respective claims against each other.” Arbitration had been ongoing at the Singapore International Arbitration Centre. Several other issues related to a tribunal have been dropped.

The companies noted that neither will have any obligations to the other going forwards, and said the settlement “stems from a mutual understanding between the companies to independently pursue future growth opportunities with a renewed purpose and focus on the evolving media and entertainment landscape.”

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Culver Max, which operates as Sony Pictures Networks India locally, had walked away from the long-gestating pact back in January, saying it was “extremely disappointed that closing conditions to the merger were not satisfied” by a closing date. Reports had pointed to disagreements over leadership of the combined entity. This was soon after senior ZEE Entertainment directors received interim suspensions from a local regulator over alleged insider trading, though these were later rescinded .

The merger had initially been struck as Sony and ZEE faced a challenging future in a rapidly changing and consolidating Indian media market. The likes of Disney and Reliance’s Viacom18 have since merged their assets, while streamers such as Prime Video and Netflix are now well established local players. The combined biz would have owned numerous TV channels, production assets and streamers Sony LIV and ZEE5 Global.

Sony would have controlled 53% of the operation with ZEE taking the other 47%, with the Japan-owned U.S. studio having more execs on the board. However, ZEE MD and CEO Punit Goenka was initially planned to lead the operation.

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