Disney Star considering legal action against Zee Entertainment for backing out of deal
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Disney Star is considering legal action against Zee Entertainment for walking out of a $1.4 billion sub-licensing agreement to telecast international cricket matches in India. Sources related to the industry gave this information. With this, Zee Entertainment Enterprises Ltd. Another legal problem may arise for (Jeel). The company is already facing Sony Group’s arbitration petition at the Singapore International Arbitration Centre. In this, a claim of nine crore dollars has been made for violation of the terms of the merger agreement. Industry sources said that Disney Star, the Indian subsidiary of media conglomerate The Walt Disney, is working on its strategy in this matter. If the voided agreement contains an arbitration clause, Disney Star may be required to resort to arbitration proceedings to resolve the dispute.
If the agreement does not contain an arbitration clause, Disney could initiate legal action to sue G for damages. Zee Entertainment Enterprises has already failed to pay the first installment of around $200 million. She has now informed the Disney star that she will not be moving forward with the agreement. Sources said this is a result of the company’s merger deal with Sony not going through. Another source confirming the matter said that the installment to be paid to Disney Star was part of Sony Group’s $1.5 billion investment in conjunction with its merger with Zeel. Sony Corporation on Monday announced the termination of its $10 billion merger agreement with Zeel. Also, arbitration proceedings have been initiated with a demand of nine crore dollars for violation of the terms. As per the merger agreement between Zeal and Sony, the Japanese company was to invest $1.575 billion in the merged entity.
With this investment, it would have a majority stake in the company that would come into existence after the merger. At present there has been no comment from Jill or the Disney star in this matter. Disney Star has acquired the broadcast rights of all ICC events from the global governing body for the Indian market for four years from 2024 to 2027. As per the agreement ZIL had exclusive television rights for ICC men’s events. This includes the ICC Men’s T20 World Cup which will be played in 2024 and 2026. Additionally, the ICC Men’s Champions Trophy (2025), and the ICC Men’s Cricket World Cup (2027) along with major ICC Under-19 events are included. Three days after Sony canceled the deal, Zeel’s managing director and chief executive officer Punit Goenka held a meeting of about 3,000 employees around the world.
In the meeting he asked the employees to move forward and adapt themselves to new opportunities. “Our industry is changing rapidly,” he said. This wind of change is giving us a new look. We have to position ourselves well to seize the opportunities that come our way. We have been a leader for the last three decades and have delivered value to those associated with us year after year.
Disclaimer: IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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