As expected, Sony he decided to cancel there maxi-acquisition of the Indian company Zee, effectively canceling a gigantic operation from 10 billion dollarswhich would lead to the creation of one of the largest media and entertainment conglomerates.
This week, Sony published a statement in which it requested the conclusion of the acquisition-related operations, after the Indian company had failed to reach the required conditionsdespite a further extension of 30 days compared to the initial deadline.
Sony reported that it was “deeply disappointed” by the failure to reach these conditions, but the feeling that the operation was no longer destined to happen had been there for some time, according to several analysts and insiders.
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As we previously reported, when signs of plans to cancel the $10 billion acquisition emerged, the main cause was the lack of agreements reached regarding how the conglomerate would be organized once the acquisition deal was completed.
Sony had in fact requested a change of guide at the top of the Indian company, considering that the presence of Punit Goenka, current CEO of Zee, was initially blocked by an Indian court dealing with issues related to antitrust, which then subsequently revised its position, but evidently leaving some doubts at Sony.
The Japanese company had also encouraged a reorganization to improve Zee's financial situation, but this has continued to worsen significantly in recent quarters, without making any strategic changes on this front.
The acquisition was supposed to lead to the creation of a huge conglomerate operating in the television and cinema sector, merging the Indian division of Sony with the large company Zee, but evidently the issue will not be followed up.
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