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News: Zee Entertainment $10 billion merger with Sony Pictures, in the works since 2021 stands terminated after Sony issued a termination notice to Zee. Sony said that merger did not close by the end date as closing conditions were not satisfied and it does not see any material impact on financials due to the termination. Sony has also demanded $90 million on alleged breach of terms. Zee says the board is evaluating all steps, including legal action.
Views: We highlight that merger was key amid superior digital growth and to counter competition amid consolidation. While termination fee demand will be legally fought by Zee, other risk such as payout for deal with Star for ICC rights will also be at risk.
Impact: Negative