The head of Sony Group Corp’s India unit has sent a letter to its employees assuring them the company will thrive despite its aborted merger with Zee Entertainment Enterprises Ltd., but gave scant details on how it plans to fend off local competitors who are bulking up.
The Japanese entertainment giant will turn its focus to content that can boost subscriber growth and revenue in the South Asian country, while actively exploring “inorganic possibilities to strengthen our market presence”, N. P. Singh, managing director and chief executive office of Sony Pictures Networks India, said in the letter seen by Bloomberg News on Wednesday.
“Let’s turn our attention back to the heart of our work— our current projects, our fantastic team, and the audiences who count on us,” Singh said, adding that the leadership was “committed to setting the company up for a long-term, strong future.”
Sony has also initiated arbitration case against Zee, alleging breaches of the merger agreement, Variety reported on Wednesday, citing people it didn’t identify. A representative for Sony in India declined to comment. Zee said in a filing Wednesday that it had initiated legal action to contest Sony’s arbitration proceedings in Singapore.
Walking away from the merger with Zee leaves Sony in a vulnerable position in India’s $25 billion media and entertainment market, with rivals Walt Disney Co and Indian billionaire Mukesh Ambani’s Reliance Industries Ltd also in talks for a merger that will create a media behemoth with stronger content lineup and pricing power.
Sony scrapped the two-year-long negotiation earlier this week amid a stalemate with Zee on whether its CEO Punit Goenka should be the head of the merged entity. Sony grew wary of Goenka after India’s regulator started a probe into the financial improprieties of him and his father Subhash Chandra, also Zee’s founder. The company is seeking $90 million in damages from Zee, the India media network said in a statement on Monday.
(Published 25 January 2024, 04:26 IST)
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