The merger scheme has two stages: the transfer of Viacom18 s TV and streaming assets to Digital18 and the demerger and vesting of these assets from Digital18 to Star India. As consideration for the scheme, Viacom18 will transfer streaming platform JioCinema to Digital18, which will pay the company a consideration of Rs 24,186 crore through an allotment of 24.18 billion fully paid-up shares of Rs 10 each.
However, on Wednesday, India’s antitrust watchdog put out an interim order dismissing the applications saying it found no grounds to provide interim relief but that the director general (DG) could go ahead with the investigation. While this could be some reason for Google to cheer, the company’s regulatory woes are far from over.
Sony Group companies Culver Max Entertainment and Bangla Entertainment (BEPL) initiated arbitration proceedings against Zee Entertainment Enterprises before Singapore International Arbitration Centre (SIAC), while Zee, denying charges, approached National Company Law Tribunal (NCLT) in Mumbai, seeking directions that the merger scheme, previously approved by the forum, be implemented.
Two days after their two-year-long efforts to merge were called off, broadcasters Zee and Sony went at each other in legal forums in India and Singapore, claiming breach of contract.