Zee-Sony merger deal fallout: The hearing for an emergency arbitration in the Zee Entertainment - Sony merger will take place at the Singapore International Arbitration Centre (SIAC). on Wednesday, 31 January, CNBC-TV18 reported.On 22 January, Sony Group Corp, the Japanese parent company of Sony Picture Network India (SPNI) & Bangla Entertainment Pvt Ltd (BEPL) announced the termination of the USD 10 billion merger agreement with ZEEL, while seeking USD 90 million for breach of conditions besides initiating arbitration.Zee Entertainment initiated legal action to contest Sony's claims of $90 million (around ₹748.5 crore) as a termination fee, for which the Japanese firm has moved the Singapore International Arbitration Centre (SIAC).Zee shares nosedive after Sony terminates merger deal.Following the deal's termination by Sony, Zee's stock crashed in the markets. On January 23, it suffered the highest single-day fall of 30.50 per cent, & ended at ₹152.50. In the trading session on Wednesday, January 24, Zee's share price partially recovered, to settle at ₹166.35 apiece on the BSE.Why was the Zee-Sony merger called off.Sony Group Corporation (SGC) had said ZEEL did not satisfy the merger conditions despite engaging in discussions to extend the end date for consummation of the transaction.
If the Sony-Zee merger was completed, then the combined entity would have owned over 70 TV channels, two video streaming services (ZEE5 & Sony LIV), & two film studios (Zee Studios & Sony Pictures Films India), making it the largest entertainment network in India.Shares of Zee Entertainment.Shares of Zee Entertainment are trading 5,72% higher at ₹171 on NSE at 11.07 am.Three days after Sony called off the deal, ZEEL MD & CEO Punit Goenka addressed a town hall meeting of around 3,000 employees across the globe, in which he asked them to move forward & chase new opportunities."Our industry is witnessing rapid changes, & these winds of change are giving us a new shape. We have to mold ourselves to be well-positioned to capitalise on the opportunities coming our way. We have been leaders over the last 3 decades & have delivered value to our stakeholders, year on year," he said.On August 30, 2022, ZEEL announced entering into a strategic licensing agreement with Disney Star for television broadcasting rights of the ICC Men's & Under-19 global events for a period of four years.
TAGS: Zee-Sony merger emergency arbitration Singapore International Arbitration Centre (SIAC) Sony Group Corp
