Sony Corp. and Zee Entertainment have settled all legal disputes related to their later annulled $10 billion merger in India.
More than two years after announcing a bold $10 billion merger of its Indian TV and streaming businesses with local giant Zee Entertainment, Sony said in January it was officially abandoning the deal.
The decision has prompted legal challenges from both companies.
The planned combination was understood to have led to a disagreement between the two parties over who would lead the merged entity. While Zee pushed for the continuation of its CEO Punit Goenka's leadership, Sony opposed it.
The failed merger was seen as a major setback for both Sony and Zee, which were looking to increase their reach at a time of increasing consolidation and digital disruption in India's rapidly evolving entertainment landscape.
“As part of the agreement, the companies have agreed to mutually withdraw all their respective claims, in the pending arbitration at the Singapore International Arbitration Centre and all related legal proceedings initiated at the National Company Law Tribunal (NCLT) and other forums,” the parties said on Tuesday. “Under the terms of the agreement, neither party will have any outstanding claims or
continuing obligations or liabilities to the other.”
They added: “The agreement is born out of a mutual understanding between the companies to independently pursue future growth opportunities with a renewed purpose and focus on the evolving media and entertainment landscape, signifying a final conclusion to all litigation.”