Zee Entertainment has opted not to proceed with its $1.4 billion deal with Disney Star for cricket match TV broadcast rights, as confirmed by an industry source. Meanwhile, Sony Corporation announced the termination of its $10 billion merger agreement with ZEEL on Monday, seeking $90 million for breach of conditions and initiating arbitration.
Under the merger agreement between ZEEL and Sony, the Japanese entity was slated to invest $1.575 billion in the merged entity and hold a majority stake.
No immediate comments were available from ZEEL regarding this development. Previously, on August 30, 2022, ZEEL had announced a strategic licensing agreement with Disney Star for television broadcasting rights of ICC Men’s and Under-19 global events for four years.
While Disney Star was set to exclusively stream ICC tournaments through Disney+ Hotstar, ZEEL was to have exclusive television rights for ICC men’s events, including the ICC Men’s T20 World Cup (2024 and 2026), ICC Men’s Champions Trophy (2025), and the ICC Men’s Cricket World Cup (2027), along with key ICC U-19 events, according to the agreement.
Disney Star secured broadcast rights for all ICC events in the Indian market from 2024 to 2027, as per the deal with the International Cricket Council (ICC).
In response to the terminated merger agreement, ZEEL has approached the National Company Law Tribunal (NCLT) seeking Sony’s adherence to the $10 billion deal. Sony, resisting Zee Chief Executive Punit Goenka’s request to stay on after the merger, has initiated legal actions to challenge the $90 million claims filed by Sony Group before the Singapore International Arbitration Centre (SIAC).
