2024-01-22 13:01:00
Sony dropped a $10 billion deal (Shutterstock photo) The Sony group (SONY) canceled the merger between the company’s branch in India and Zee Entertainment from Mumbai, the Japanese company said today (Monday). The same huge deal was already announced two years ago, when Sony wanted to merge its company with the Indian media company. The purpose of Sony’s purchase was to create competition against streaming giants Netflix, Amazon and Disney through control of the Indian media company. Sony’s announcement comes at a particularly critical time for the company as far as the Indian market is concerned, this against the background of the negotiations that Disney is holding with billionaire Mukesh Ambani’s Reliance Industries, with the aim of conquering the streaming market in India.
More in-
The official announcement from Sony regarding the failed deal reads: “The closing conditions for the merger were not met. We do not anticipate any material impact on the financial results as a result of the termination of the merger agreements.” Sony did not give the real reason for the fall of the deal in the official announcement, but according to a Reuters report, there were arguments and tensions between the two companies when it comes to the question of who will lead the united company.
The Indian company proposed that its CEO lead the company, while Sony did not agree. The Indian company Zee issued its own statement in which it said that it had received the message from Sony that it was dropping the deal, and that it would “examine all available options before us.”
Zee also claimed that Sony is demanding compensation in the amount of 90 million dollars because of alleged violations, according to Zee, of the terms of the merger of the companies. In the official announcement, the situation states: “The company flatly denies all claims, including Sony’s claims for termination fees.”
The breakup comes at a time when competition in India’s entertainment industry is at its peak. With a relatively free market and a huge English-speaking population, the world’s most populous country is an attractive destination for global entertainment companies.
Prime Minister Narendra Modi’s government expects the country to soon become the third largest media and entertainment market in the world, up from fifth place today. If the Disney-Reliance deal eventually goes through, it will not only help the American company establish its position in India, but also create a huge entity with more than 100 TV channels and two streaming platforms.
Comments to the article (0):
Your response has been received and will be published subject to the system policy.
Thanks.
for a new comment
Your response was not sent due to a communication problem, please try again.
Return to comment
#Sony #dropped #billion #deal #Disney #market