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Wednesday, November 13, 2024
HomeCricketZee-Sony now has a lot more choices available to them because their...

Zee-Sony now has a lot more choices available to them because their merger agreement was dissolved

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The termination of the $10 billion merger pact could result in them operating as independent organizations or perhaps a Sony-Disney merger.

The merger between Zee and Sony has been called off more than two years after it was first announced. It was envisioned as the second largest organization after Star and Disney India, with 75 channels and a strong presence in entertainment, sports, and regional markets, as well as two OTT platforms. It’s a setback for both Zee and Sony, and everyone’s waiting to see what they do next.
Those familiar with the deal note that there was a clear disagreement in why both sides saw value in proceeding with it.

One of the bankers stated, “For Zee, it was driven by financial challenges, while Sony saw a business need.”
According to him, Zee’s dangerous position was due to the promoters’ large debt and the parent firm, Essel Group. Sony, on the other hand, had a little footprint with little to talk about outside of Hindi general entertainment, and losing the rights to the showpiece Indian Premier League meant losing a cash source. “There is a good chance that both Zee and Sony will now continue running their individual operations since another interested party really does not exist.”Last June, the Securities and Exchange Board of India issued an interim order prohibiting Subhash Chandra, Chairman of Essel Group, and his son Punit Goenka from holding significant management roles in Zee Entertainment or any other listed company. It accused them of diverting funds to private companies. That is seen as one of the primary reasons why the Zee-Sony merger was not completed.

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