“Under the terms of the settlement, neither party will have any remaining obligations or liabilities towards the other,” the statement said. “The resolution reflects a mutual decision to focus on new growth opportunities and the evolving media and entertainment sector, marking the end of all disputes.”
Sony and Zee $10B India Media Deal Dispute : Market Reaction
Following the announcement, Zee’s stock surged more than 11%, trading at approximately 150.90 Indian rupees ($1.80) per share. Sony’s shares also saw an increase, rising 3.45% to $96.01 per share.
Implications of the Deal
The aborted merger had promised to create a formidable force in the Indian media landscape. Zee, a major media conglomerate, boasts a diverse portfolio spanning television, print, internet, film, and mobile content. The proposed deal faced scrutiny from the Competition Commission of India in 2022, which expressed concerns over the potential for “unparalleled bargaining power” by the merged entity. At that time, the companies were negotiating pricing adjustments and concessions to address regulatory concerns.
