M&A

M&A

Undone: Sony terminates $10-B merger deal with Zee Entertainment

Economic Times  

Japan's Sony Group has sent a termination letter to Zee Entertainment Enterprises Ltd (ZEEL) to call off the merger between its India unit and the Zee media network.The merger did not close by the ‘end date’ (December 21, 2023) as the closing conditions to the merger were not satisfied. Zee had asked Sony to push back the deadline. A 30-day grace period was granted which ended by midnight of January 21, 2024.In December 2021, Sony and Zee had signed definitive agreements for the merger. Sony was to indirectly hold a majority of 50.86% of the combined company; the founders of ZEEL would hold 3.99%; and the other ZEEL shareholders were to hold a 45.15% stake.The deal was anticipated to conclude in 8-10 months. However, two years down the line, it remained incomplete due to regulatory investigation and legal suits, among other things, involving Zee and its promoters including MD & CEO Punit Goenka.