afaqs! news bureau

Sony's Tony Vinciquerra considering M&A opportunities in India following termination of the Zee deal

The industry is currently speculating about a potential alliance between Sony and Kalanithi Maran's Sun TV Network.

Sony Pictures Entertainment (SPE) chairman and CEO Tony Vinciquerra announced that the company is exploring merger and acquisition opportunities in India following the failed merger with Zee Entertainment, as reported by ET.

The merger agreement between Sony Pictures Networks India (SPNI) and Zee was unsuccessful due to regulatory issues and the decline of the Indian entertainment company's finances.

SPE is currently engaged in multiple M&A discussions that could result in beneficial outcomes for the marketplace. Vinciquerra expressed confidence in the company's future in India despite the failed merger with Zee and expressed confidence in the potential for a strategic partnership between Sony and Kalanithi Maran's Sun TV Network.

In the past, private talks between two companies reached deadlock due to both parties not willing to give up control. Sony ended its planned merger with Zee due to Zee's failure to meet certain conditions and disagreement regarding the leadership of the combined company.

The company is also requesting $90 million in termination fees from Zee and the second party has requested Sony to compensate $90 million in termination fees due to the unsuccessful merger agreement.

SPNI MD and CEO NP Singh informed employees that the company plans to explore both organic and inorganic options to enhance its presence in the Indian market. Vinciquerra mentioned that the company is looking at various candidates to take over as CEO instead of NP Singh, amid reports that the company has already chosen a new CEO.

The merger of Viacom18 from Reliance Industries with Star India from Walt Disney will provide the company with an opportunity to rebuild its India business.

Have news to share? Write to us