Despite the setback with Zee, Sony remains optimistic about its long-term prospects in India. According to Nikkei Asia reports, the company is aggressively considering alternative opportunities for its India business.
“In the long term, India remains a promising market,” Nikkei Asia quoted Hiroki Totoki, President, COO, and CFO of Sony.
Totoki assured that the setback with Zee will not hinder the company’s investment strategy.
On January 22, 2024, Sony Group Corp. officially notified Zee Entertainment Enterprises Ltd. its plans to call off the merger between its India unit and the media network, ending a two-year long saga. The $10 billion dollar merger was first announced in December 2021.
Sony terminated the proposed merger, citing Zee’s failure to fulfil certain financial terms outlined in the deal and provide a viable plan to rectify the situation.
In response, Zee refuted the allegations in a letter addressed to Sony, and accused the Japanese conglomerate of acting in ‘bad faith’ by calling off the merger.
Sony had initiated arbitration proceedings for an alleged breach of terms by Zee Entertainment. In response, Zee initiated legal action to contest Culver Max and BEPL’s claims at the Singapore International Arbitration Centre.
However,Sony encountered a setback as the emergency arbitrator denied any relief in the Singapore International Arbitration Centre (SIAC).