Sony and Zee Reach Settlement, Ending Merger Disputes

Zee Entertainment Enterprises Ltd and Sony‘s Culver Max Entertainment Pvt. Ltd, operating as Sony Pictures Networks India (SPNI), along with Sony group company Bangla Entertainment Pvt. Ltd, have revealed a comprehensive settlement to resolve all disputes related to their previously planned merger.

The agreement brings an end to the legal proceedings that had been ongoing at the Singapore International Arbitration Centre and the National Company Law Tribunal (NCLT) in India. As part of the settlement, both companies have agreed to withdraw all claims against each other and terminate the Composite Scheme of Arrangement that had been filed with regulatory authorities.

The non-cash settlement stipulates that neither party will have any outstanding obligations or liabilities to the other. “The settlement stems from a mutual understanding between the companies to independently pursue future growth opportunities with a renewed purpose and focus on the evolving media and entertainment landscape, signifying the definitive conclusion of all disputes,” the companies said in a statement.

Zee, a prominent player in the Indian media space, boasts a global reach of over 1.3 billion people across 190 countries. SPNI manages a portfolio of popular channels including Sony Entertainment Television, Sony MAX and Sony SAB, among others.

The proposed $10 billion merger between the two entities was halted earlier this year after being more than two years in the making. Legal disputes followed.

In recent months, both companies have revealed several changes. Zee is cutting its workforce by 15% and is implementing a leaner management structure. Meanwhile, Sony’s India head NP Singh is stepping down and former Disney executive Gaurav Banerjee is taking over. Sony also revealed a management reshuffle recently.

An $8.5 billion merger between Reliance and Disney is still on the cards, but could face anti-trust scrutiny over cricket rights.