"Sony Pictures Networks India Private Ltd (SPNI) (now known as Culver Max Entertainment Ltd), a wholly owned subsidiary of Sony Group Corp (Sony), today issued a notice terminating the definitive agreements entered into by SPNI and Zee Entertainment Enterprises Ltd," the Japanese company said in a press release issued on Monday.
Sony terminates Zee deal: Sony s decision to abandon a $10 billion Indian media merger will leave large advertisers like Unilever and Procter & Gamble with limited options. They may have to turn to a potential rival to reach India s 1.4 billion population. Sony s local unit terminated the deal with Zee Entertainment after disagreement over who would lead the merged entity. The termination was likely influenced by an ongoing inquiry into funds misappropriation by Zee s founder and CEO, Punit Goenka. This failure leaves advertisers without an alternative to Mukesh Ambani, who is consolidating his media empire through partnerships with players like Disney.
Zee-Sony merger: Sony on Monday confirmed sending termination notice to Zee Entertainment, ending proposed $10 billion merger in India. The merger aimed to create the largest media giant in India. Sony and Zee had signed definitive agreements in December 2021, but the merger remained incomplete due to regulatory investigation and legal suits. Sony served the termination notice after the End Date passed and the parties failed to agree on an extension. The termination notice was issued on January 22, 2024.
Sony has been uncomfortable with this regulatory overhang in view of its corporate governance policies, experts tracking the deal said. It has been pushing the name of its India MD & CEO NP Singh for the top job, which Zee's Punit Goenka has opposed.