Zee, Sony Enter Settlement Agreement: Timeline of the Failed $10 Billion Mega-Merger

Zee Sony Merger: The fate of the mega media merger between Zee Entertainment and Sony India (Culver Max Entertainment) has finally come to an end as both parties entered into a settlement agreement, bringing the $10 billion deal to a close.

On Tuesday, Zee Entertainment Enterprises Limited (ZEEL) witnessed its shares surge by nearly 15 per cent on the bourses after the announcement of the deal's termination. Here’s a timeline of the entire saga around the failed merger-

September 2021- Zee Entertainment's board of directors unanimously approved the merger with Sony Pictures Networks India.

December 2021- After a 90-day due diligence period, the two companies finalised the merger agreement paving the way for the mega deal.

February 2022- In February 2022, IndusInd Bank sought insolvency proceedings against Zee from the Mumbai NCLAT, alleging a default of Rs 83.08 crore.

July 2022- Zee and Sony India received their final approvals for the merger from the bourses (both NSE and BSE). The competition watchdog, CCI (Competition Commission of India) also gave its nod with certain modifications in October.

December 2022- IDBI Bank moved to NCLT (National Company Law Tribunal) against ZEEL, seeking an insolvency proceeding to recover dues of Rs 149.60 crore.

March 2023- ZEEL resolved its payment dispute with IndusInd Bank. In June, Sebi (Securities Exchange Board of India) took action against Punit Goenka and his father, ZEEL founder Subhash Chandra, prohibiting them from holding any managerial or directorial positions.

August 2023- The Mumbai bench of NCLT gave its approval for the merger. However, in September, the mega deal faced another roadblock as Axis Finance filed an appeal against NCLT's nod to the merger.

October 2023- The Securities Appellate Tribunal (SAT) lifted the ban imposed by SEBI on Zee's Punit Goenka, allowing him to hold directorial positions in the company again. Meanwhile, in November, Sony reportedly sought an agreement to appoint NP Singh to lead the newly merged company.

December 2023- NCLAT issued a notice to ZEEL in response to petitions filed by IDBI Bank and Axis Finance. During the same month, the original deadline for completing the merger passed (on December 21). ZEEL later stated it is in talks with Sony to extend the merger deadline.

January 2024- The mega media merger was officially called off, causing ZEEL's share prices to fall into the red territory.

August 2024- The mega-merger deal finally came to a close on Tuesday, marking an end to what could have become the largest media entity in the country.

Zee made an official statement on August 27 that both the parties reached a settlement agreement with Culver Max Entertainment Private Limited (formerly Sony India) and Bangla Entertainment Private Limited.

Interestingly, this development comes at a time when Mukesh Ambani headed-Reliance and Disney are already in talks for their mega merger deal, valued at Rs $8.5 billion. While the deal is under scrutiny by the CCI with the commission sending around 100 antitrust queries, the deal if signed will create the largest streaming platform in India.