Shares of Zee Entertainment Enterprises were climbing on Friday as the media firm said it would pursue a large termination fee from Sony after the latter reneged on a much-publicised merger to create one of the nation's largest media conglomerates after two years of discussions.

What Happened: Zee said it would demand a hefty $90 million (₹750 crore) termination fee from Sony Pictures Networks India — now known as Culver Max Entertainment and Bangla Entertainment (BEPL) — after their $10-billion (₹83,165 crore) merger fell through in January.

In a stock exchange filing, Zee said Culver Max and BEPL have failed to comply with their obligations under the merger cooperation agreement. Zee said it has therefore terminated the agreement and called on them to pay the agreed-upon termination fee.

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Sony Group Corporation, accusing Zee of not meeting merger conditions, had initiated arbitration at the Singapore International Arbitration Centre (SIAC), seeking the same break-up fee.

Zee is countering Sony's claims and has petitioned the Mumbai National Company Law Tribunal (NCLT) to enforce the merger scheme. SIAC has already denied Sony’s request to prevent Zee from pursuing the merger enforcement.

The merger, announced over two years ago, would have created a media giant with over 70 television channels, two streaming services (ZEE5 and Sony LIV), and two film studios (Zee Studios and Sony Pictures Films India). Despite the NCLT’s approval in August 2023, Sony terminated the deal, citing Zee’s failure to meet closing conditions.

Price Action: Zee’s share price was up 1.48% at ₹150.75 in early trade on Friday.

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