Sony-Zee deal broken
The country’s biggest media deal i.e. the deal between Sony and Zee Entertainment has now been cancelled. The value of this deal was around 10 billion dollars, which has now fallen into disrepair. This has something to do with the agreement between Reliance Industries and Disney regarding ‘Star Network’, because Zee Entertainment has recently canceled the agreement with Disney + Star for the rights of TV broadcast of cricket matches. . The price of this deal was also around 1.4 billion dollars.
What happened was that for this deal, Zee Entertainment had to pay the first installment of $200 million to Disney+Star, which it could not pay. For this reason the deal between Zee and Disney was cancelled.
This deal was part of the agreement with Sony
The deal between Zee Entertainment and Disney was actually a part of the deal between Zee and Sony. Not only was Zee Entertainment being merged with Sony, but Sony was also going to invest 1.5 billion dollars in the newly formed company. Sources say that in this case Zee Group was going to pay the investors of Sony with this money. In this way, all the cricket broadcast rights of Disney + Star would ultimately reach Sony’s account.
Sony Corporation on Monday announced the termination of its $10 billion merger agreement with Zee. At present, both the companies have reached NCLT for mediation.
Connection to Disney+Hotstar and Reliance
Sony-G’s deal was going on for about 2 years, but now suddenly it has been cancelled. This has happened at a time when their rival company Disney + Hotstar is going to close its India business and merge it with Reliance. Reliance already has a media brand like Viacom 18, apart from this it has also recently made its Jio Cinema platform popular. It is going to get many benefits by merging with Disney.
In a news from ET, it has been said that Reliance’s main focus is on becoming a sports network. That’s why it is planning to acquire Disney. Disney had estimated that the size of this deal would be $10 billion, now Reliance has offered it only $4.5 billion.
Although he was offered less money because Disney was already going to make a deal to sell its cricket TV rights to Zee Entertainment, but now the deal with Zee has been cancelled, so he can get a better deal from Reliance. .