Zee Entertainment on Monday said it will take legal action against Sony Pictures Networks India (SPNI) after Sony officially issued a termination letter canceling the $10 billion merger deal between its Indian unit and Zee Entertainment.
Zee said in a regulatory filing: "The company is evaluating all available options and, in accordance with the guidance of the board of directors, taking all necessary steps to safeguard the long-term interests of stakeholders, including taking appropriate legal action and contesting CulverMax and BEPL's claims in arbitration proceedings."
Sony terminated the merger announced two years ago because the two sides could not agree on some deal terms and demanded that Zee pay a $90 million termination fee.
Under the original terms of the deal, the merger should have been completed by December 21, 2023, including obtaining regulatory and other approvals, with a one-month grace period to complete the transaction.