India’s Zee Entertainment Enterprises and Sony’s Indian unit have resolved their legal disputes, agreeing to withdraw all mutual claims related to their aborted $10 billion merger, as announced by Zee on Tuesday. This resolution brings an end to the legal battle that followed the collapse of the deal, which was initially slated for January but faltered due to Zee’s inability to meet certain financial conditions.
Zee had previously sought intervention from the company tribunal to enforce the merger but later shifted its focus to pursuing claims against Sony through arbitration at the Singapore International Arbitration Center (SIAC).
Now, both companies have agreed to retract all claims filed at the SIAC and the National Company Law Tribunal. The settlement is non-monetary, meaning neither party will have further obligations or liabilities towards the other.
Following the news, Zee’s shares surged by 13% on Tuesday, although they have dropped by roughly 35% since the merger’s cancellation in January. Elara analyst Karan Taurani described the settlement as a relief for Zee, while Shriram Subramanian, founder of InGovern Research Services, noted that the resolution alleviates litigation concerns and allows Zee’s management to refocus on growth objectives.
