The highly anticipated mega-merger between Zee Entertainment and the Sony Group has hit a toadblock, bringing a halt to the creation of a colossal $10 billion media entity.
To provide context, it all started two years ago when Zee sought funding for its expansion plans, coinciding with Sony's quest for an Indian partner to reclaim market share lost to Disney-Star. The synergy between the two was evident, as Zee boasted an extensive viewership network, particularly through regional channels where Sony lacked a significant presence.
Had the merger succeeded, it would have resulted in the formation of the largest entertainment network by revenue, boasting a remarkable 75+ channels. Additionally, the combined streaming platform from Zee5 and SonyLiv would have commanded over 20% of the digital streaming space, positioning the merged entity as a dominant force in the industry.
Sony and Zee found themselves entangled in a protracted disagreement regarding the terms of a proposed merger.