Sony Explores Opportunities In India Post Zee Merger Fallout
Sony Group stated its intention to explore various opportunities in India after terminating its $10 billion merger with Zee Entertainment Enterprises.
The termination was officially confirmed on January 22 with Sony citing Zee's failure to meet closing conditions.
Hiroki Totoki, President, COO & CFO, Sony expressed optimism about India's long-term growth potential during an earnings call following the conglomerate's quarter-ended December 31, 2023 results report. "It's a very appealing market," he remarked, addressing an investor's question.
The termination of the merger agreement has led to a dispute over a $90 million termination fee with Sony seeking compensation from Zee. Zee, in response has approached the National Company Law Tribunal (NCLT) to direct Sony to proceed with the merger.
Commenting on the current status of negotiations, Totoki stated, "The negotiations are not progressing at the moment." In light of this, he xoutlined Sony's strategy moving forward, saying, "We will try to seek various opportunities. And if we can find another opportunity that would replace this type of plan, we will look into that, and we will also continue to look into organic growth and our strategy."
Totoki reassured investors that the funds earmarked for the terminated merger would not impact Sony's capital allocation or investment behaviour. "So at the moment, we don't have any concrete plans," he affirmed.
