ZEE Entertainment Enterprises and Sony’s Culver Max Entertainment have resolved a dispute related to their failed merger.
In a joint statement released this morning, the parties, including Sony group company Bangla Entertainment, said they had “amicably resolved” issues arising from the collapse of the merger earlier this year through a comprehensive, non-cash settlement.
As part of the settlement, the two companies agreed to “dismiss all claims against each other.” The arbitration was underway at the Singapore International Arbitration Centre. Several other issues relating to the arbitral tribunal were also dismissed.
The companies said neither party has any further obligations to the other and that the settlement “results from the mutual understanding of the companies to independently pursue future growth opportunities with a renewed focus on the evolving media and entertainment sectors.”
Culver Max, which operates in India as Sony Pictures Networks India, walked away from the long-awaited deal in January, saying it was “very disappointed that the closing conditions to the merger were not satisfied” by the deadline for completion of the merger. Reports had suggested differences over the leadership of the combined company. This came shortly after a senior ZEE Entertainment director was interim suspended by local regulators for alleged insider trading, though the suspension was later lifted.
The merger was initially struck because Sony and ZEE faced a difficult future in India’s rapidly changing and consolidating media market. The likes of Disney and Reliance’s Viacom 18 have since combined assets, and streaming players like Prime Video and Netflix are now firmly established locally. The combined entity would own numerous TV channels, production assets, and the streaming players Sony LIV and ZEE5 Global.
Sony would control 53% of the business and ZEE would own the remaining 47%, with the Japanese-owned US studio having more executives on the board, though initially ZEE MD and CEO Punit Goenka was set to head the business.