Lights, Camera, Litigation: The Zeel-Sony Showdown
- IJLLR Journal
- Mar 10, 2024
- 1 min read
Adnan Danish, National Law Institute University Bhopal
Zaier Ahmad, National Law Institute University Bhopal
Background
The entertainment industry witnessed a major merger drama that kicked off in December 2021. Zee Entertainment Enterprises Ltd. (ZEEL) and Sony Pictures Networks India's (SPNI) Culver Max Entertainment inked a merger deal, set to conclude within 24 months, precisely by December 21, 2023.
This merger deal got the green light from both the Competition Commission of India (CCI) and the National Company Law Tribunal (NCLT) in October 2022 and August 2023, respectively.
As the clock ticked towards the merger's culmination, Zee requested a 30-day extension, pushing the new deadline to January 21, 2024. Despite the extension, the deal hit a roadblock. The grounds cited by Sony were clear – the closing conditions stipulated in the agreement had not been met.
Pursuant to this Sony demanded a termination fee of 90 million dollars on account of alleged breaches of merger cooperation agreement terms by ZEEL by invoking arbitration in SIAC.
On the other, ZEE refuted all claims by Sony and Zee shareholders moved NCLT seeking the implementation of merger with Sony.
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