Zee Entertainment‘s shares rocketed 15% on Tuesday after the media firm said it had wiped the slate clean on disputes related to its merger with Sony Pictures Networks India.

What Happened: Zee Entertainment has reached a non-cash agreement to settle all disputes related to a merger agreement with Culver Max Entertainment, which operates as Sony Pictures Networks India, and its group firm, Bangla Entertainment (BEPL), Zee said in a press release on Tuesday.

The settlement will result in the withdrawal of all claims against each other in the ongoing arbitration at the Singapore International Arbitration Centre, National Company Law Tribunal (NCLT) and other forums.

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The settlement also entails the withdrawal of their respective schemes of arrangement from the NCLT and the notification of relevant regulatory authorities. The terms of the settlement ensure that neither party will have any outstanding or continuing obligations or liabilities to the other.

In May, Zee had said that it would demand a hefty $90 million (₹755 crore) termination fee from Sony after their $10 billion (₹83,937 crore) merger collapsed in January.

Zee said that Culver Max and BEPL did not met their obligations under the merger cooperation agreement. As a result, Zee terminated the agreement and was seeking the payment of the agreed-upon termination fee.

Announced over two years ago, the merger was set to form a media powerhouse with more than 70 television channels, two streaming services (ZEE5 and Sony LIV), and two film studios (Zee Studios and Sony Pictures Films India). Although the NCLT approved the merger in August 2023, Sony ended the deal, citing Zee's failure to fulfil the closing conditions.

Price Action: Zee Entertainment’s shares soared 11% to ₹150.12 on Tuesday.

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