Sony Pictures Networks proposed of ZEE Entertainment Enterprises Limited’s 20-25% stake has been scrapped after talks broke down over valuation terms.
Economic Times reports that Sony had submitted its non-binding offer in March but talks stalled as Sony was keen on a simple merger, whereas ZEE preferred an outright cash deal.
A source told the publication, “It’s pens down for Sony. ZEE’s brinkmanship is coming in-between and the delta of valuation differences is becoming too much to bridge, among other issues.”
With Sony now likely out of the frame, it seems other international giants like Comcast (with partner Atairos) and Apple may pick up the stake that was offered to Sony.
It is reported that ZEEL promoter, Subhash Chandra has been scouting for a strategic partner in the company, in order to repay debts worth Rs. 13,000 crore.