Zee, Sony make last-ditch attempt to revive $10 billion merger deal

As per reports, one of the reasons behind the $10 billion deal being called off was the lack of consensus over who would head the merged entity.

Zee Entertainment Enterprises Ltd (ZEEL) has engaged with Sony Pictures Networks India (SNPI) once more in a last-ditch attempt to revive their $10-billion merger that was called off on January 22, according to a report by The Economic Times.

The report states that representatives from both sides held meetings in Mumbai over the last fortnight to salvage the deal, although major differences still persisted that could scupper the revival attempt.

Moneycontrol couldn’t independently verify the report.

Zee is expected to inform Sony in the next 24-48 hours if its willing to accept the terms and conditions, the report added.

The mega-merger between Zee and the Sony group was called off on January 22 with the latter issuing a termination letter to formally exit from the amalgamation agreement.

As per reports, one of the reasons behind the $10-billion deal being called off was the lack of consensus over who would head the merged entity.

As per the terms of the merger, the deal was to be completed by December 21, 2023. However, the lack of consensus pushed the amalgamation into a month-long grace period, which ended on January 21.

Also Read | Zee-Sony merger called off: A timeline of how the $10 billion deal took off and derailed

The NCLT had on August 10, 2023, approved the scheme of merger, which could have created a mega media entity. Had the merger gone through, the combined entity would have owned over 70 TV channels, two video streaming services — ZEE5 and Sony LIV — and two film studios — Zee Studios and Sony Pictures Films India – making it the largest entertainment network in India.