Sony Group has withdrawn its $10 billion deal with Indian Zee Entertainment – Kommersant
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The Japanese Sony Group sent a notice to the Indian Zee Entertainment Enterprises (ZEEL) to terminate the pending deal to merge their assets in India for $10 billion. The reason for the Sony Group’s decision was the parties’ disagreements about who would head the combined structure. This is reported by Reuters.
Agreements on a potential merger between Sony Pictures Networks India and ZEEL were reached two years ago. The deal was seen as very important in this key and highly competitive market. Especially considering the fact of the impending merger of the Indian divisions of Disney with the structures of Reliance Industries of billionaire Mukesh Ambani. All this time, negotiations and discussions were ongoing between the companies, including the candidacy of the head of the merged company. The Indian side believed that the post of CEO should be taken by Punit Goenka, CEO of ZEEL. The Sony Group objected, arguing that Mr Goenka was being investigated by a market regulator. As a result, once again the parties simply did not extend the negotiation procedure, seeing no possibility of reaching an agreement.
ZEEL has not yet commented on the decision of the Sony Group, but, according to Reuters, last Friday the Indian company announced its determination to implement the deal with the Japanese company. According to analysts interviewed by the agency, the termination of the merger “will have a negative effect on both parties seeking to expand their presence in the Indian market.” Sony Group estimates that the termination of the deal will not have a significant impact on its 2024 financial performance.
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