Sony Group Calls Off Merger With Zee Entertainment, Sends Termination Notice: Report
On December 21, 2021, Sony Pictures Networks India Pvt Ltd (SPNI) and Zee Entertainment Enterprises Ltd (ZEEL) announced their merger through definitive agreements. The merger involves combining ZEEL into SPNI, integrating their linear networks, digital assets, production operations, and program libraries.
Zee-Sony Fallout: $10 Billion Merger Likely To Be Called Off, Report Says | Photo: Twitter
Sony Group Corp has officially ended the merger plans with Zee Entertainment Enterprises Ltd. and have sent a termination Notice to Zee Entertainment early on Monday, stating their decision to call off the merger between Sony's India unit and the media network of Zee Entertainment, reported Bloomberg on January 22.
Prior to this, on January 19, it was reported that Sony Group Corporation is planning to call off the USD 10 Billion merger agreement between its India unit and Zee Entertainment Enterprises Ltd. This decision comes after over two years of discussions and negotiations.
About the Zee-Sony Merger
On December 21, 2021, Sony Pictures Networks India Pvt Ltd (SPNI) and Zee Entertainment Enterprises Ltd (ZEEL) announced their merger through definitive agreements. The merger involves combining ZEEL into SPNI, integrating their linear networks, digital assets, production operations, and program libraries.
Upon the merger announcement in September, Sony's US dollar 1.575 billion investment was set to grant them a 52.93 per cent stake in the new entity, while Zee would hold the remaining 47.07 per cent.
Additionally, Sony Pictures Entertainment Inc (SPE) agreed to pay a non-compete fee to certain ZEEL founders as part of the deal. The founders aimed to infuse this fee as primary equity capital into SPNI.
Post-merger closure, SPE would indirectly hold a majority stake of 50.86 per cent in the combined company, with ZEEL promoters holding 3.99 per cent, and other ZEEL shareholders owning a 45.15 per cent stake.
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