In 2021, Zee and Sony agreed to merge, forming India’s largest media company valued at $10 billion. Sony would have a controlling stake of 50.86%, while Zee would hold 49.14%. Zee’s share price surged from ₹170 to ₹318 after the announcement, reflecting strong shareholder approval. The merger also served as redemption for Zee’s founder, Subhash Chandra, and his family, who had faced financial challenges.
The Chandra family, with a reduced 4% stake due to debt payments, saw the merger as an opportunity to address financial woes. Zee initially resisted but eventually repaid lenders. In August 2023, after a year and a half, Zee obtained the final approval for the merger.
Amidst the merger process, the Securities and Exchange Board of India (SEBI) investigated the Chandra family for fraud. SEBI found evidence of fund misappropriation from banks and Zee.
Sony, previously patiently awaiting the completion of the merger, abruptly decided to terminate the deal last month. Additionally, Sony demanded a termination fee of $90 million from Zee.
Read about this and the entire deal here - Sony abandons its merger with Zee and wants to get paid for it