Representational image only.
| Photo Credit: AP

Sony Pictures Networks India on June 24 announced the appointment of former Disney executive Gaurav Banerjee as its Managing Director and CEO, effective on or before August 26, pending regulatory approvals.

“Mr. Banerjee will succeed N. P. Singh, who will move into the role of Non-Executive Chairman after a 25-year tenure,” Sony Pictures Networks India (SPNI) said in a statement.

Mr. Singh will move into the new role only after Mr. Banerjee takes charge, to support the transition through the end of the fiscal year.

“N.P. Singh’s leadership has been instrumental in shaping SPNI into the powerhouse it is today. I am confident that Gaurav Banerjee, with his proven track record and visionary approach, will continue to drive SPNI’s success,” said Ravi Ahuja, Chairman of Global Television Studios and President & COO of Sony Pictures Entertainment.

“Mr. Banerjee previously held the positions of Head of Content for Hindi Entertainment & Disney+ Hotstar and Business Head for Star Bharat, Hindi & English Movies, Kids & Infotainment, and Regional (East),” the statement said.

He started career in media as an assistant producer and anchor at Aaj Tak and later moved to Star News, where he started producing and anchoring prime time news shows.

“Mr. Banerjee has a master’s degree in film-making and TV production from Jamia Millia Islamia University and an undergraduate in history from St. Stephens, Delhi,” the company said. His appointment follows Mr. Singh’s decision to move on, which was announced last month.

Mr. Singh had said that after nearly 44 years in his career, he is “ready to focus on social change and shift from operational roles to advisory ones”.

The Japanese parent of SPNI, had pushed for Mr. Singh to lead the merged entity proposed to be formed after amalgamation with India’s Zee Entertainment Enterprises Limited (ZEEL) before calling off the $10 billion deal in January this year.

The deal announced more than two years back, collapsed following a stalemate over who will lead the merged entity and also due failure to meet closing conditions by ZEEL despite a month’s extension of deadline.

ZEEL has, on account of Culver Max’s and BEPL’s breaches under the Merger Cooperation agreement, terminated the MCA by issuing a letter dated May 23, 2024. 
| Photo Credit: Reuters

Zee Entertainment Enterprises has sought a termination fee of $90 million (around ₹748.7 crore) from the Sony Group for calling off the $10 billion merger deal in January this year.

It has sought termination fees from two Sony Group entities — Sony Pictures Networks India (SPNI), now known as Culver Max Entertainment, and Bangla Entertainment (BEPL), according to a regulatory filing from Zee Entertainment Enterprises Limited (ZEEL) on May 24.

ZEEL has, on account of Culver Max’s and BEPL’s breaches under the Merger Cooperation agreement (MCA), terminated the MCA by issuing a letter dated May 23, 2024. “The company has sought a termination fee from Culver Max and BEPL under the provisions of the MCA,” it said.

“Culver Max and BEPL have failed to comply with their obligations under the MCA. Therefore, the company has terminated the MCA and called upon Culver Max and BEPL to pay the termination fee i.e. the aggregate amount equal to $90 million in accordance with the MCA,” it said.

Earlier on January 22, 2024, Sony Group Corporation (SGC) had said that ZEEL did not satisfy the merger conditions and initiated arbitration proceedings before the Singapore International Arbitration Centre (SIAC) claiming $90 million as termination fee.

This was contested by ZEEL before the SIAC, which denied any interim relief to the Sony group against the Indian broadcaster. ZEEL had moved the National Company Law Tribunal seeking implementation of the proposed merger and later withdrew its plea.

“We hereby wish to inform you that the company has, on account of Culver Max’s and BEPL’s breaches under the MCA, terminated the MCA by issuing a letter dated May 23, 2024, and sought a termination fee from Culver Max and BEPL in accordance with the provisions of the MCA,” the filing said. ZEEL and SPNI had entered into an agreement to merge on December 22, 2021.

On August 10, 2023 the Mumbai Bench of NCLT approved the scheme of merger of ZEEL with Sony group entities Culver Max Entertainment and BEPL, which could have created a $10 billion media entity.

However, two years after that Sony Corporation announced the termination of the agreement on January 22, 2024.

Zee Entertainment logo
| Photo Credit: Reuters

ZEE Entertainment Enterprises Ltd on Tuesday said it has withdrawn its application, seeking implementation of the merger with Sony, filed before the National Company Law Tribunal Mumbai bench.

The company filed an application with the NCLT on January 24, 2024, seeking directions on the implementation of a composite scheme of arrangement between ZEE Entertainment Enterprises Ltd (ZEEL) and Sony group firms Culver Max Entertainment Pvt Ltd and Bangla Entertainment Pvt Ltd.

Earlier on January 22, Sony Group Corp called off a $10 billion merger of its India unit with ZEEL, following a stalemate over who will lead the merged entity. The deal was announced more than two years back. Sony had sought USD 90 million as break-up fees for violating the terms of the merger pact and invoked arbitration.

In a statement on Tuesday, ZEEL said the steps taken by it to withdraw the implementation application from NCLT are based on the legal advice received by the board.

“This decision will also enable the company to pursue growth and evaluate strategic opportunities to generate higher value for all shareholders. The Board remains committed to reviewing the strategic action-oriented steps taken by the management and providing timely guidance,” it added.

The company further said, “This decision to withdraw the implementation application will enable the company to continue to aggressively pursue all its claims against Sony in the ongoing arbitration proceedings at the Singapore International Arbitration Centre (SIAC) and in other forums”.

Sony has already withdrawn its merger application from the NCLT after filing arbitration before SIAC.

On the reasons behind the decision, ZEEL Chairman R. Gopalan said the immediate priority for the company is to focus on performance and achieve its targeted goals for the future.

“We have reviewed the key steps taken by the management over the last few months that are result-oriented, and we believe that the company is well poised to chart a stronger growth trajectory,” he added.

Hence, after seeking an independent legal opinion, the board has advised the management of the company to withdraw the implementation application filed before the NCLT, Gopalan said.

“The board remains focused towards maximising shareholder value, strengthening the company’s claims in arbitration and enabling the company to explore strategic opportunities,” he noted.

Recently, ZEEL management initiated a process of rationalisation of the workforce by 15 per cent to prune staff strength across the company while its MD and CEO Punit Goenka took a 20% cut in his remuneration.

The board had also instituted a Monthly Management Mentorship (3M) Program to regularly review and advise the management on critical business aspects.

“The concerted efforts being taken by the board and the management are aimed towards achieving robust growth to consistently generate higher value for shareholders,” the statement said.