Sony Calls Off Merger Between India Unit and Zee Entertainment — Update

By Kosaku Narioka

Sony Group has called off the merger of its Indian unit with Mumbai-based media company Zee Entertainment Enterprises, ending a yearslong effort to create a multibillion-dollar media powerhouse in the South Asian nation.

The Japanese entertainment and electronics giant said Monday that the merger had missed a deadline for completion, with closing conditions going unmet. It didn't elaborate on the conditions in a filing to the Tokyo Stock Exchange.

Sony is also seeking a termination fee of $90 million due to alleged breaches of the merger agreement terms by Zee, according to a statement by Zee on Monday. Zee refuted Sony's claims and said it will take steps to safeguard stakeholders' interests.

Zee said it made every effort to achieve the merger.

Sony's India unit and Zee had agreed to merge in 2021 in a bid to meet growing consumer demand for entertainment content. Under the plan, Sony planned to indirectly hold a 51% stake in the combined company, while Zee Chief Executive Punit Goenka would lead the entity as CEO, the companies said at the time.

Sony said the termination will have a limited impact on its financial results since the deal wasn't factored into fiscal-year earnings projections disclosed in November.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

January 22, 2024 05:36 ET (10:36 GMT)

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