It takes many milestones to conclude such deals successfully: Anupriya Acharya on Zee-Sony

Culver Max Entertainment (formerly Sony Pictures Networks India) has officially issued a notice to Zee Entertainment Enterprises Ltd (ZEEL), announcing the termination of the merger agreement dated December 22, 2021. In a statement issued, Culver Max Entertainment said, “After more than two years of negotiations, we are extremely disappointed that closing conditions to the merger were not satisfied by the end date.”

Meanwhile, ZEEL, in a press release, said that it categorically denies all the assertions raised by Culver Max and Bangla Entertainment Pvt Ltd (BEPL) on the alleged breaches under the terms of the Merger Co-operation Agreement (MCA), including their claims for the termination fee.

When contacted on the Zee-Sony merger development, , Anupriya Acharya, South Asia CEO, Publicis Groupe, noted, “M&A deals, especially those involving behemoths are complex and challenging because of the scale, and complexities. Plus, the two parties need to agree on the objectives of the M&A activity, shared vision and the future of the merged entity, cultural and integration issues, etc. Something that looks good on paper may not necessarily get concluded.”

Acharya further said, “As per media reports, Sony Group has formally notified Zee that it is calling off the merger; the fruition of which would have created a formidable entertainment giant. However, such developments are not unusual as far as M&A goes, because it takes many milestones to conclude such deals successfully.”