KEY TAKEAWAYS
- Japan’s Sony Group scrapped plans for a $10 billion merger of its Indian unit with India’s Zee Entertainment.
- The agreement between Sony Pictures Networks India and Zee was a deal that could have reshaped the country’s media landscape.
- The deal reportedly collapsed due to a deadlock over the leadership of the merged entity.
Japan’s Sony Group (SONY) ended a $10 billion merger of its Indian unit with India’s Zee Entertainment on Monday, calling off a deal that could have reshaped the media landscape in one of the world’s largest streaming markets.
Meanwhile, Walt Disney (DIS) is reportedly in talks to merge its Indian operations with that of billionaire Mukesh Ambani’s Reliance Industries.
Sony’s Indian unit, Sony Pictures Networks India, and Zee had announced the merger agreement of both company’s networks, digital assets, production operations and program libraries in 2021.
The agreement reportedly fell apart because of disagreements between the two on who would lead the merged entity. Zee wanted the combined entity to be spearheaded by CEO Punit Goenka, who is being investigated by India’s markets regulator.
Sony accused Zee of a breach of the agreement, as specific “closing conditions” were not met, with both companies unable to reach a consensus on extending the Jan. 21 deadline.
Sony said that it didn’t anticipate any material impact on its financial results from the scrapped deal.
Shares of Sony were 0.8% higher at $99.73 per share as of about 12 p.m. ET Monday following the news. They’ve gained more than 12% over the past year.