Fallout with Zee: Sonny planning more M&A in India? Details

Updated May 31, 2024 | 17:08 EST

There is speculation about the possibility of a merger between Sony’s Sun TV Network and Kalanithi Maran. According to an ET report, experts say there is minimal overlap between the Sony-Sun deal as Sony mainly operates in the Hindi-speaking market while Sun TV is the dominant player in south India.

Sony Pictures Network is looking at mergers and acquisitions in India.

Sony Pictures Entertainment (SPE) is considering mergers and acquisitions (M&M) in India after failed deals with Zee Entertainment, according to an ET report quoting the Company’s President and CEO Tony Vinciquerra during the 2024 business segment meeting.

Highlighting the impact of the merger with Zee Entertainment, the SPE chief said it cannot be implemented due to regulatory issues and deterioration of the Indian entertainment giant’s finances.

“We are currently conducting several other (M&A) talks that may or may result in something that will help us in the market. We are not worried about our survival because we have a very good business there. We will survive and do well,” Vinciquerra said in response to a question about the company’s India strategy after the failed merger with Zee.

There is speculation about the possibility of a merger between Sony’s Sun TV Network and Kalanithi Maran. According to an ET report, experts say there is minimal overlap between the Sony-Sun deal as Sony mainly operates in the Hindi-speaking market while Sun TV is the dominant player in south India.

Consequences of the Zee-Sony merger

In January, Sony withdrew from its proposed merger agreement with Zee Entertainment, which had been in discussion for over two years, due to failure to meet the conditions.

Sony terminated its $10 billion merger, citing failure to meet “closing conditions” after two years of negotiations.

“The violations committed by Zee are not ‘procedural or technical’ in nature and will have a material impact on transactions,” Sony said in a 62-page notice.

Meanwhile, Zee Entertainment confirmed receiving the termination letter from Sony but denied Sony’s allegations, adding that the Japanese company’s demand for a termination fee of $90 million is “legally unsustainable.” The termination of the contract was “made in bad faith” and “is unlawful and unlawful,” Zee wrote in its letter.