The big, bad breakup: Inside Sony’s walkout from the $10Bn Zee merger

It’s bad for both parties, but like in most separations, one invariably ends up more wounded than the other. 

In this case, the more affected party is Zee Entertainment Enterprises Ltd (ZEEL), which is having a nightmarish week. After being served a deal termination notice by Sony Group’s local entity (Sony Pictures Networks India) on Monday, ZEE stock crashed over 32% to hit the lower circuit on the BSE on Tuesday. It was trading at Rs 155—its lowest level since August 2020—before recovering slightly to close at Rs 165.75 on Wednesday. 

Until last week, the Mumbai-based media major had been continuing “good faith negotiations” with Sony Group, reiterating its commitment towards closing the $10 billion merger—which has been in the works since December 2021—and seeking a possible six-month extension on the deadline. Come Monday, however, everything had come to nought.