ZEE and Sony ‘merger’ deal derailed
April 3, 2019
By Chris Forrester
The proposed Sony bid to acquire a significant portion of Zee Entertainment Enterprises (ZEEL) has been aborted, according to local reports in Mumbai.
Sony submitted its non-binding offer in March, but reportedly the two sides have not been able to agree valuation terms. Sony, says India’s Economic Times, wanted a simple merger, but ZEE preferred a cash deal.
“It’s pens down for Sony. Zee’s brinkmanship is coming in-between and the delta of valuation differences is becoming too much to bridge, among other issues,” said an official who is directly involved, in a quote to the Economic Times.
Other high-profile names reported to be interested in picking up the Sony baton include Comcast (in a bid with partner Atairos) and Apple.
The whole process has been forced on Zee’s chairman and founder Subhash Chandra because of the fall in Zee’s share price and the company’s banking covenants.