Sony has decided to abandon the highly anticipated $10 billion merger with Zee Entertainment, as Zee failed to meet specific financial terms outlined in the deal, according to a termination notice scrutinized by Reuters. The termination notice revealed that Zee did not fulfill certain cash availability thresholds, and Sony cited a “lack of commercial prudence” on the part of the Indian network as contributing factors to the dissolution of the merger.
In response to Sony’s claims, Zee Entertainment denied the allegations in a letter to Sony, accusing the Japanese company of acting in “bad faith” by calling off the merger. This unexpected turn of events has left both companies in a contentious position.
The proposed merger between Zee and Sony in India aimed to create a media powerhouse, boasting over 90 channels spanning sports, entertainment, and news, making it a significant player in the world’s most populous nation. However, after two years of negotiations, Sony officially terminated the plans on January 22, citing unmet “closing conditions.”
Related: French Antitrust Regulator Slaps Sony with €13.5 Million Fine for Market Dominance Abuse
While Sony and Zee have not disclosed the details of the termination notice publicly, the document reviewed by Reuters highlighted Sony’s dissatisfaction with Zee’s failure to make “commercially reasonable” efforts to meet financial thresholds. The termination notice particularly emphasized issues related to cash availability.
As the fallout between the two entertainment giants continues, the industry watches closely, anticipating the potential ripple effects on the media landscape in India and beyond.
Source: Reuters
Featured News
Judge Mehta Questions Both Sides in Landmark Google Antitrust Case
May 2, 2024 by
CPI
FCC Urges Urgent Funding for Removal of Chinese Telecom Equipment from U.S. Networks
May 2, 2024 by
CPI
Former Pioneer CEO Facing Potential Criminal Charges For Colluding With OPEC
May 2, 2024 by
CPI
South Korea’s Antitrust Regulator Greenlights K-Pop Powerhouse Deal
May 2, 2024 by
CPI
Exxon’s Pioneer Purchase Approved, Former CEO Barred from Board
May 2, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI