May 29, 2024 05:39 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Rajkot fire: Gaming zone co-owner among those killed, police confirms today | Eyeing more seats in Bengal, PM Modi holds mega roadshow in north Kolkata | 'I am not against minorities but won't divide the country based on religion': PM Modi | Delhi LG VK Saxena takes swipe at Kejriwal over children's hospital fire, orders anti-corruption probe | Punjab minister Balkar Singh's obscene video surfaces, BJP calls AAP 'Anti Aurat Party'
Zee withdraws application for execution of merger with Sony
Photo courtesy: IBNS File

Zee withdraws application for execution of merger with Sony

| @indiablooms | 17 Apr 2024, 12:16 am

Mumbai: Zee Entertainment Enterprises Ltd. announced on Tuesday that it has withdrawn its application from the National Company Law Tribunal (NCLT) regarding the execution of its merger with Sony Entertainment Enterprises (Culver Max), the company said in a statement.

In January, the media company led by Punit Goenka initially approached the tribunal, requesting guidance on executing the merger. This decision came after Sony, in one of its letters, terminated the long-pending merger with the media and entertainment company.

Zee, however, urged Culver Max Entertainment to immediately retract the termination and confirm its commitment to fulfilling its obligations in executing the approved Merger Scheme, endorsed by the tribunal.

“The step taken by the company to withdraw the implementation application is based on the advice received by the board after a detailed consultation with legal experts. The decision will also enable the company to pursue growth and evaluate strategic opportunities to generate higher value for all shareholders," the statement said.

The company board further underscored its ongoing assessment of strategic and proactive measures initiated by the management, pledging to furnish timely directives as necessary.

As a legal recourse, Zee had previously declared its intent to pursue claims against Culver Max and Bangla Entertainment Pvt. Ltd. (BEPL) in arbitration proceedings at the Singapore International Arbitration Centre (SIAC).

In clarification, the company said that withdrawing the implementation application facilitates its continued vigorous pursuit of all claims against Sony in the ongoing arbitration proceedings and other relevant forums.

The merger between two of the largest media companies was seen as a huge development in the Indian media and entertainment sector before Sony terminated the agreement and sought compensation from Zee for alleged breaches of the terms.

Zee Chairman R Gopalan stated that Zee's immediate priority would be to concentrate on the company's performance and accomplish its targeted goals for the future, according to media reports.

Gopalan further mentioned that the board's focus remains on maximizing shareholder value, bolstering the company's claims in arbitration, and enabling the exploration of strategic opportunities, the reports said.

Over the past few weeks, Zee has been undertaking efforts to restructure its business, reduce costs, and enhance its Ebitda margins. Goenka, the managing director & chief executive officer, has implemented a 20% pay cut for himself and announced a 15% reduction in overall headcount.

During this period, the company has also witnessed several senior-level departures, including Rahul Johri, the president of business; Punit Misra, the president of content and international markets; Nitin Mittal, the president and group chief technology officer; and Shariq Patel, the chief business officer at Zee Studio.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.