The deal, introduced greater than two years in the past, was perceived as essential for the survival of the businesses in a extremely aggressive market.
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Shares of India’s Zee Leisure jumped greater than 10% on Tuesday after a report that its $10 billion merger with Japanese tech big Sony may very well be revived.
The Financial Occasions, an Indian information publication, reported on Tuesday that Zee had re-engaged with Sony in a last-ditch try and salvage the deal, which was formally known as off final month.
Representatives from either side have met at varied places throughout Mumbai as makes an attempt to revive the deal has gathered steam not too long ago, the ET reported.
Sony and Zee didn’t instantly reply to a CNBC request for remark.
Shares of Sony had been down greater than 1% in Japan on the market shut.
Sony first proposed to mix its India leisure enterprise with Zee in December 2021. The negotiations collapsed after greater than two years.
The Japanese tech big stated final month that it terminated the transaction as a result of “amongst different issues, the closing circumstances to the Merger weren’t glad” by the agreed time limit. Sony stated it had engaged “in good religion” in discussions to get an extension to the time limit.
Zee on the time stated that it denied all allegations made by Sony that it breached the merger settlement, including that it might take “acceptable authorized motion.” Zee was looking for a termination payment of $90 million.
Final month, Zee sued Sony over the termination of the deal and urged the Japanese agency to revive the merger.
The union of Zee and Sony’s India subsidiary would have created a possible content material and leisure powerhouse in India. Zee owns a number of TV channels, a film studio and a streaming service. Sony would have had entry to Zee’s native content material, giving it an even bigger footing within the profitable Indian leisure market. Zee, which faces intense competitors at residence from gamers like Disney and Reliance Industries, would have benefitted from the backing of Sony.
