The Japanese conglomerate emphasized that India remains a highly promising market with significant long-term potential. Sony Group announced on Wednesday that it will explore alternative opportunities in India following the cancellation of a $10 billion merger with Zee Entertainment Enterprises Ltd.
During a conference call following the announcement of its quarterly results for the period ending December 31, 2023, Hiroki Totoki, President, COO & CFO of Sony, revealed that the Japanese conglomerate views India as a highly promising market with significant long-term potential.
On January 22, Sony Group terminated its merger agreement with Zee, citing the inability of the Indian company to meet closing conditions. Sony sought a termination fee of $90 million from Zee, which was disputed by Zee.
Subsequently, the Indian media and entertainment company approached the National Company Law Tribunal (NCLT) seeking enforcement of the merger by Sony.
During the earnings call, Totoki responded to inquiries regarding the future of Sony’s entertainment business in India by stating that negotiations with Zee are currently at a standstill. However, Sony remains committed to the Indian entertainment sector due to its significant potential, describing it as a highly “appealing market.”
“We will explore various opportunities” to fill the void left by the canceled merger with Zee, Totoki asserted, emphasizing that Sony will also focus on organic growth.
Totoki’s remarks suggest that the Japanese company may consider alternative arrangements with other entities in the Indian entertainment industry, potentially including RIL or even the Adani group.
Sony reported consolidated sales of Yen 3,747.5 billion, up from Yen 3,078.3 billion in the previous year, with net income reaching Yen 294.82 billion compared to Yen 259.62 billion a year ago.
