The merger deal between India’s ZEE Entertainment and Japan’s Sony Group has gone awry. On Monday, Japanese conglomerate Sony said it has pulled out of a merger with India’s Mumbai-based ZEE Entertainment.
The merger was announced more than two years ago. But even then, the deadlock over who will lead the combined company did not end.
According to analysts, Sony wanted to build a $10 billion new media giant in the Indian entertainment market to compete with domestic rivals as well as global streaming giants like Netflix and Amazon. However, ZEE and Sony retreated from there.
In a statement, Sony said ‘certain conditions to the merger agreement have not been met.’ But the statement does not say anything clear about what the unfulfilled conditions are.