Sony agrees to discuss extending their Zee merger deadline “in good faith” following Zee's request
Sony Pictures Entertainment and Zee Entertainment Enterprises Ltd, working on a $10-billion mega-merger for two years, have decided to extend their deadline beyond Thursday. Despite spending a significant amount on merger-related expenses and obtaining regulatory approvals, Sony and Zee couldn’t reach an agreement, leading to the need for more time to finalise the deal.
On December 20, Zee Entertainment Enterprises Ltd (ZEEL) notified the stock exchanges that Sony Pictures Networks India, now called Culver Max Entertainment Private Limited, has agreed to engage in discussions regarding extending the merger deadline.
Zee has confirmed receiving communication from Sony, expressing their intent to enter into negotiations “in good faith” and “with a view to discuss the extension of the date required to make the scheme effective by a reasonable period of time.”
One day after Sony Pictures Networks India (SPNI) mentioned that it hadn’t accepted Zee Entertainment Enterprises Ltd’s (ZEEL) request for a deadline extension on their planned $10-billion merger, ZEEL, led by the Subhash Chandra family, stated that it received communication from the Sony group. This communication is regarding discussions on extending the deal, which was initially announced nearly two years ago.
Zee, in a regulatory filing said, “The Company is now in receipt of a communication from CMEPL (Culver Max Entertainment Pvt Ltd) and Bangla Entertainment Pvt Ltd BEPL that they will enter into good faith negotiations as required under the Merger Cooperation Agreement (MCA) entered amongst the Parties, the Company, CMEPL and BEPL, with a view to discuss the extension of the date required to make the Scheme effective by a reasonable period of time.”
The merger, initially slated for completion by December 22 as per the 2021 agreement, faced a setback. Differences arose over leadership in the merged entity, hindering progress. Analysts view Sony’s openness to negotiate with Zee in good faith as a positive development, ensuring collaboration between the two parties and providing a ray of hope for the merger.
Also Read: Sony seeks clarity on merger decision which hinges on Zee’s upcoming proposal
