Sony seeks $90 million termination fee from Zee for alleged breaches of merger agreement
Culver Max Entertainment is seeking a termination fee of $90 million from Zee Entertainment Enterprises on account of alleged breaches of the terms of the Merger Co-operation Agreement (MCA), Zee said in a statement to the stock exchange.
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View Details»Zee has refuted Sony's allegations of MCA breach, stating that it holds all rights in the matter, suggesting legal action may be taken. It also said Sony is invoking arbitration under the MCA and seeking emergency interim reliefs against the company.
Sony today terminated the merger agreement with Zee following the expiry of the one-month good faith negotiation period on January 21. The two-year agreement between the two companies to complete the merger ended on December 21, 2023. In December 2021, the two companies signed an agreement to merge their TV and digital businesses.
«We wish to inform you that the Board of Directors of the Company at its meeting held today i.e. January 22, 2024 took note of communications dated January 22, 2024, received from Culver Max and BEPL (a) purporting to terminate the MCA and seeking termination fee of USD 90,000,000 on account of alleged breaches by ZEEL of the terms of the MCA, and (b) invoking arbitration against the Company and seeking emergency interim reliefs against the Company,» Zee said.
«The Company categorically refutes all claims and assertions made by Culver Max and BEPL regarding alleged breaches of the MCA by ZEEL, including their claims for the termination fee, and reserves all its rights in this matter,» Zee said.
«The Company is evaluating all available options and basis the guidance received from the Board and will take all necessary steps to
