Zee Entertainment and Sony Pictures Networks announce $10 billion merger agreement

BMA has learned that Zee Entertainment Enterprises and Culver Max Entertainment (doing business as Sony Pictures Networks India) have mutually decided to terminate their merger agreement valued at $10 billion.

In a joint statement, the companies, including Sony's Bangla Entertainment group, said they had reached a “comprehensive, non-cash settlement” that amicably resolved the disputes that arose after the merger collapsed earlier this year. The settlement includes withdrawing all respective claims against each other, terminating arbitration proceedings at the Singapore International Arbitration Centre and resolving other arbitration-related issues.

Both companies stated that they have no further obligations to each other and will pursue future growth opportunities independently.

The merger was originally intended to combine the assets of Zee and Sony in response to the rapidly changing and consolidating Indian media market, which has already seen mergers such as that of Disney and Reliance's Viacom18, as well as the rise of local streaming platforms such as Prime Video and Netflix.

The deal would have given Sony a 53 percent stake in the merged company, while Zee would have held the remaining 47 percent and Zee's managing director and CEO Punit Goenka would lead the company. However, disagreements over governance and regulatory challenges led Sony to back out of the agreement in January.