- Shares in India's Zee Entertainment soared more than 10% on Tuesday following reports that the company is reviving its $10 billion merger with Japanese technology giant Sony.
- Indian news publication Economic Times reported on Tuesday that Mr. Gee had re-signed with Sony as a last resort to regain the contract that was officially terminated last month.
- Sony first proposed merging its Indian entertainment business with Zee in December 2021, but those talks collapsed more than two years later.
Shares in India's Zee Entertainment soared more than 10% on Tuesday after reports that its $10 billion merger with Japanese technology giant Sony could be revived.
Indian news publication Economic Times reported on Tuesday that Mr. Gee had re-signed with Sony as a last resort to regain the contract that was officially terminated last month.
Efforts to revive the agreement have picked up steam recently, with representatives from both sides holding meetings across Mumbai, ET reported.
Sony and Gee did not immediately respond to CNBC's requests for comment.
Sony's stock price fell more than 1% in Japan by market close.
Sony first proposed merging its Indian entertainment business with Zee in December 2021, but talks broke down more than two years later.
The Japanese technology giant announced last month that it had terminated the transaction due to “among other things, the completion conditions of the merger were not met” by the agreed closing date. Sony said it had engaged in discussions “in good faith” to extend the deadline.
Gee at the time denied all claims by Sony that it had violated the merger agreement, adding that it would take “appropriate legal action.” Gee was seeking a $90 million termination fee.
Mr. Gee sued Sony last month over the termination of the contract and called on the Japanese company to reinstate the merger.
A merger between Zee and Sony's Indian subsidiary would have created a potential content and entertainment powerhouse in India. Zee owns several television channels, movie studios, and streaming services. Sony could have access to Zee's local content and gain a bigger foothold in India's lucrative entertainment market. Gee, which faces stiff competition domestically from companies such as Disney and Reliance Industries, would have benefited from Sony's support.
