In a surprising turn of events, Zee Entertainment Enterprises (ZEEL) has reportedly re-opened discussions with Sony Group Corporation in a last-ditch attempt to revive their $10 billion merger that was officially called off last month. However, major differences and disagreements over terms and conditions reportedly persist, casting doubt on the final outcome, according to the Economic Times report.
ZEEL has approached Sony in the past 48 hours, seeking to revive the merger deal. Significant disagreements over terms and conditions, including "conditions precedent" (CPs), remain unresolved, according to the ET report. The outcome of the renewed discussions remains uncertain, with no guarantee of a successful agreement.
The proposed merger between ZEEL and Sony, first announced in December 2021, aimed to create India's largest media and entertainment company. However, the deal faced multiple roadblocks, including regulatory hurdles and disagreements between the parties. On January 22, 2024, Sony officially called off the merger, citing ZEEL's failure to meet certain conditions.
ZEEL reportedly needs to inform Sony within the next 24-48 hours whether it accepts all terms and conditions, including the disputed CPs. Sources indicate that significant differences remain, particularly regarding the CPs, which Sony considers crucial for the deal's success. The future of the merger remains uncertain, with both parties needing to bridge the existing gap to reach an agreement.