New Delhi: ZEE Entertainment Enterprises and Sony’s Culver Max Entertainment have settled their disputes concerning their unsuccessful merger.
A joint statement issued today announced that the parties, including Sony’s subsidiary Bangla Entertainment, have reached a “comprehensive non-cash settlement” that amicably resolves the issues arising from the merger’s earlier collapse this year.
Under the settlement, both companies have consented to “withdraw all respective claims against each other.” Arbitration proceedings had been underway at the Singapore International Arbitration Centre, and several related tribunal issues have now been dismissed.
The companies have acknowledged that they will not have any future obligations to each other, stating that the settlement arises from a mutual agreement to independently seek growth opportunities with a renewed focus on the evolving media and entertainment landscape.
Culver Max, known locally as Sony Pictures Networks India, had abandoned the protracted merger agreement in January, expressing “extreme disappointment” that the merger’s closing conditions were not met by the deadline. Reports suggested leadership disagreements within the merged entity. This followed the interim suspension of senior ZEE Entertainment directors by a local regulator on charges of alleged insider trading, which were subsequently lifted.
The merger was initially formed as Sony and ZEE navigated a challenging environment in the rapidly evolving and consolidating Indian media market. Competitors such as Disney and Reliance’s Viacom18 have merged their assets while streaming platforms like Prime Video and Netflix have become established local contenders. The merged entity would have possessed a portfolio of TV channels, production assets, and streaming services Sony LIV and ZEE5 Global.
Sony was set to hold a 53% stake in the venture, with ZEE owning the remaining 47%, granting the Japan-based U.S. studio greater executive control.