Zee misses $200 million Disney payment deadline amid Sony merger uncertainty

Zee Entertainment Enterprises has reportedly missed a deadline to pay $200 million to Walt Disney Co's India unit for TV rights of cricket matches.  According to a Bloomberg report, the delay in payment is attributed to Zee's efforts to conserve cash in anticipation of a potential breakdown of its merger with Sony Group Corp.

Defaulting on the payment to Disney unit poses fresh headaches for Zee.

On Tuesday, Zee panned reports that claimed that Sony was planning to call off its merger. "Company is committed to the merger with Sony and is continuing to work towards a successful closure of the proposed merger,” Zee said.

If it goes through, the merged entity will take on global giants like Netflix, Amazon Prime Video, Disney+ Hotstar and local incumbents like JioCinema. Last week, Sony Group hinted that it may cancel the deal with Zee Entertainment more than two years after it was announced due to a disagreement over whether its CEO Punit Goenka should lead the merged entity, according to reports.

Also read: Zee-Sony merger: Zee says break-up buzz is baseless 

As per the agreement signed in 2021, Goenka would lead the new company, but Sony is reportedly not happy with the ongoing regulatory probe against Goenka.