Zee Entertainment and SONY logos are displayed on this illustration taken.
| Photo Credit: Reuters
The collapse of a deliberate $10-billion merger with Sony’s unit has heaped strain on Zee Entertainment, one in every of India’s hottest TV networks, to pursue offers with new companions or concentrate on areas equivalent to digital leisure to revive its fortunes.
A Zee-Sony India merger would have created a media powerhouse on the earth’s most populous nation with 90-plus channels throughout sports activities, leisure and information segments, which, India’s antitrust physique at one time stated might have “un-paralleled bargaining power” when backed by Sony’s international attain.
But after two years of deal talks, the Japanese firm this week scrapped the deal saying the phrases of its merger settlement weren’t met and is demanding $90 million in termination charges through arbitration. Zee denies any lapses and has began its counter-challenge legally.
Both Sony and Zee misplaced out because the merger might have helped them emerge stronger in India’s $28-billion media and leisure area, particularly when rivals — billionaire Mukesh Ambani’s Reliance and Walt Disney — are holding merger talks for his or her India media belongings.
But the scrapping of the merger and the authorized struggle with Sony is seen jolting Zee extra because it already faces a bunch of regulatory, enterprise and monetary challenges, in accordance to analysts and three business executives with direct information of its considering.
Zee’s promoting revenues fell to $488 million for the 2022-23 12 months from round $600 million 5 years in the past.
Cash reserves dropped to $86 million from $116 million in that interval.
