According to industry sources, the breakdown of the merger deal with Sony has resulted in Zee Entertainment backing out of a US$1.4 billion licensing deal with Disney Star for TV broadcast rights of cricket matches. Zee Entertainment Enterprises Ltd (ZEEL), which has already missed the first tranche of around USD 200 million, will not proceed further, industry sources told PTI.
Another industry source confirming the development said that the installment to be paid to Disney Star was part of the $1.5 billion investment made by Sony Group after its merger with ZEEL. Sony Corporation on Monday announced termination of its US$10 billion merger agreement with ZEEL while demanding US$90 million for breach of terms besides initiating arbitration.
As per the merger agreement between ZEEL and Sony, the Japanese entity was to invest US$1.575 billion in the merged entity and hold the majority stake. There was no immediate comment from ZEEL on the development.
Three days after Sony canceled the deal, ZEEL MD and CEO Punit Goenka addressed a townhall meeting of around 3,000 employees from across the globe, in which he asked them to move on and pursue new opportunities. “Our industry is witnessing rapid change, and these winds of change are reshaping us. We have to position ourselves well to take advantage of the opportunities that come our way. We have been at the forefront for the last 3 decades and have delivered value to our stakeholders year after year,” he said.
On August 30, 2022, ZEEL had announced entering into a strategic licensing agreement with Disney Star for the television broadcast rights of the ICC Men’s and Under-19 global events for a period of four years. A joint statement said that Disney Star will continue to exclusively stream all ICC tournaments through its digital platform Disney+ Hotstar.
This was done with in-principle approval from the International Cricket Council (ICC). Disney Star acquired the broadcast rights of all ICC events for the Indian market from the sport’s global governing body for four years from 2024 to 2027.
As per the agreement, ZEEL was to have exclusive television rights for ICC men’s events, including the ICC Men’s T20 World Cup, which will be played in 2024 and 2026, the ICC Men’s Champions Trophy (2025), and the ICC Men’s Cricket World Cup . (2027), along with major ICC Under-19 events, it said. ZEEL on Wednesday approached the National Company Law Tribunal (NCLT) to get Sony to honor its US$10 billion merger deal.
Sony had opposed the demand of Subhash Chandra’s son Punit Goenka, who was investigated by Sebi over fraud allegations, to stay after the merger. It has also initiated appropriate legal action to counter the USD 90 million (Rs 748.5 crore) claims filed by Sony Group before the Singapore International Arbitration Center (SIAC).
Follow us on Google news ,Twitter , and Join Whatsapp Group of thelocalreport.in
