India’s Zee Entertainment urges Sony to restore blockbuster merger

Indian entertainment conglomerate Zee Entertainment on Wednesday said it urged Sony to revive their blockbuster entertainment merger and has sued the Japanese tech giant over the deal’s termination.

Sony earlier this week called of the transaction with Zee Entertainment, which is reported to be worth $10 billion. Sony is seeking a $90 million breakup fee from Zee over the collapsed deal, according to Zee, which said the company is seeking this sum “on account of

Zee was reportedly unable to seek a termination fee itself from Sony over the deal termination, as said termination had passed a deadline of Dec. 21, 2023 for the two firms to complete the merger.

A major media presence in India, Zee owns several TV channels, a movie studio and a streaming service locally.

A merger of Zee with Sony’s India subsidiary, Culver Max Entertainment Pvt. Ltd., and its entity Bangla Entertainment Pvt. Ltd. (BEPL), would have created a potential content and entertainment powerhouse in the southeast Asian country.

Sony would have gained access to Zee’s local content, giving it a bigger footing in the lucrative Indian entertainment market. Zee, which faces intense competition at home from players like Disney and Reliance Industries, would have benefitted from the backing of Sony.

This breaking news item is being updated.