Zee spent Rs. 427 crore in compliances to see through merger with Sony
Zee’s annual report also revealed that it spent Rs. 176.20 crore in FY23. Furthermore, it spent Rs. 190.39 crore in the first six months of the current fiscal year towards the merger. Even after this, the merger was called off.
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Zee Entertainment Enterprises Limited (ZEEL) reportedly spent Rs. 427 crore on compliance till the end of the December 2023 quarter for the merger with Sony, that has now fallen through.
The company added that it had taken all the required steps to comply with the obligations and terms of the merger agreement.
The Rs. 427 crore includes all compliance expenditure for FY23 and the first nine months of FY24. Out of this, Rs. 60.34 crore was spent in the December quarter itself ahead of the proposed deadline for the merger.
In line with the aspiration of wanting the merger to be implemented, Zee took several steps, such as divestment or closure of profitable businesses in the domestic and international markets. I personally offered several proposals and solutions to Sony to address their demands. But unfortunately, they remained unaccepted,” said Puneet Goenka, MD and CEO of ZEEL in the company’s earnings call.
Zee’s annual report also revealed that it spent Rs. 176.20 crore in FY23. Furthermore, it spent Rs. 190.39 crore in the first six months of the current fiscal year towards the merger. Even after this, the merger was called off.
ZEEL had been waiting for a series of regulatory sign-offs from SEBI, CCI and ROC, among others. The company also received the go-ahead from the NCLT after approvals from shareholders and creditors.
This merger was set to create a media powerhouse worth $10 billion. As per the arrangements, Sony Pictures Networks India (SPNI) would have held 50.86 percent of the company, Zee's promoters 3.99 percent, and the remaining 45.15 percent was to be allocated to the public shareholders.
The merged entity would have had over 100 channels and two leading OTT platforms and would’ve competed with Disney Star and other rival OTT platforms such as Netflix and Amazon Prime.
