Indian media group Zee Entertainment announced that it has reached a settlement with Sony Pictures Networks India's legal dispute.
The Zhitong Finance App learned that the Indian media group Zee Entertainment Enterprises Ltd. recently announced that a settlement has been reached on the legal dispute with Sony Pictures Networks India. This news contributed to a significant rise in Zee's stock price and ended the fierce corporate battle between the two companies caused by the failure of the merger. Originally, this merger plan was expected to become a giant in the media industry.
On Tuesday, Zee's headquarters in Mumbai issued a joint statement announcing that the two parties will “amicably resolve all disputes through comprehensive cashless methods.” The announcement marks the eventual failure of Sony Group's Indian subsidiary's merger attempt with Zee. Following news of the settlement, Zee's share price quickly soared 15%.
Although the specific terms of the settlement have not been disclosed to the outside world, this marks the end of the dispute between the two sides for more than a year. In January of this year, Sony and Zee officially cancelled their merger plans. Previously, the two sides sought to merge in one of Asia's largest streaming marketplaces to create a leading company in the entertainment industry. However, after two years of twists and turns and delays, the merger plan ultimately failed to materialize.
After the merger plan came to light, the two companies requested each other to pay a break-up fee, and both claimed that each party had failed to fulfill the obligations stipulated in the merger agreement. The legal dispute was finally settled by the Singapore Arbitration Court.
In a statement, Zee and Sony said: “The two companies have agreed to withdraw all ongoing claims in the Singapore International Arbitration Centre and Indian corporate courts. This settlement is based on mutual understanding between the two sides to each seek future growth opportunities.”
The settlement not only removed legal barriers for Zee, but also paved the way for Zee to seek profitable growth in a highly competitive industry. Notably, at the end of February, The Walt Disney Company (DIS.US) signed a binding agreement to merge its Indian subsidiary with Viacom 18 Media Pvt. under billionaire Mukesh Ambani to form an entertainment company valued at $8.5 billion. The company also has a large number of cricket broadcasting rights. This shows that India's media and entertainment industry is experiencing rapid consolidation and development.