Sony-Zee Merger Cancellation: Know Full Timeline Of Acquisition Saga

Sony Group Corp has called off a $10-billion merger plan with Zee Entertainment Enterprises Ltd (ZEEL) and the former has officially notified the latter about the same. It has ended a two-year acquisition saga. ZEEL on January 22, 2024, announced its intention to pursue legal action against Sony Pictures Networks India (SPNI).

Here’s the Over 2-Year Timeline

September 21, 2021: The board of directors of Zee unanimously approved the merger proposal with Sony Pictures Networks India.

December 21, 2021: The board approved the merger proposal, aiming to create a media powerhouse.

February 2022: IndusInd Bank filed for insolvency proceedings against Zee Entertainment.

July 29, 2022: Stock exchanges NSE and BSE approved the Zee-Sony merger.

October 4, 2022: The Competition Commission of India (CCI) approved the merger with voluntary structural remedies.

December 2022: IDBI Bank moved the National Company Law Tribunal (NCLT) against Zee, seeking an insolvency proceeding to recover Rs 149.60 crore in dues.

After the reports of Sony calling off the Zee merger plan, Zee Entertainment Enterprises Limited (ZEEL) on January 22, 2024, announced its intention to pursue legal action against Sony Pictures Networks India (SPNI).

In a regulatory filing, Zee said, “The company is evaluating all available options and basis the guidance received from the Board and will take all necessary steps to safeguard the long-term interests of its stakeholders, including by taking appropriate legal action and contesting Culver Max and BEPL’s claims in the arbitration proceedings.”

According to reports, the bone of contention between the two parties is the leadership of the merged entity. While Zee wants Punit Goenka to the firm, Sony is not confident to move on with his candidature due to an ongoing Securities and Exchange Board of India (Sebi) investigation against Goenka. Notably, Sony Pictures Networks India Pvt — if there is a merger — will have a 50.86 per cent stake in the new entity, while Zee founders will own 3.99 per cent. The remaining shares will be owned by public shareholders, as per the merger deal terms disclosed in the past.