Culver Max Entertainment, previously known as Sony Pictures Networks India (SPNI), has canceled plans to merge with Zee Entertainment. The merger, initially announced on December 22, 2021, aimed to create a massive USD 10 billion media entity in India.
A statement from Sony Group Corporation revealed that SPNI, a wholly-owned subsidiary of Sony, issued a notice terminating the merger agreements with Zee Entertainment Enterprises Ltd (ZEEL). According to the deal, the merger was expected to be completed before December 21, 2023, with regulatory approvals and other conditions.
If the merger didn’t close within 24 months after the signature date, the parties were supposed to discuss extending the end date. However, as the closing conditions were not met by the end date, Sony sent a termination notice to ZEEL after a one-month grace period.
Although ZEEL had sought a deadline extension on December 17, SPNI initially did not agree but later agreed to discuss the matter. The proposed merger had already received regulatory approvals from the Competition Commission of India (CCI), NSE, BSE, shareholders, creditors, and the National Company Law Tribunal (NCLT) in August.
In summary, the planned merger between Culver Max Entertainment and Zee Entertainment has been called off due to unmet closing conditions within the specified timeframe.
