A Game of Bluff Scuttled Sony-Zee’s Plans to Create $10 Billion Media Giant

  • Zee’s sudden demand for indemnity for Goenka spooked Sony
  • Trust between parties eroded since regulator’s June order
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In November, Sony Group Corp.’s lawyers got a nasty surprise during a routine call from the legal team of Zee Enterprises Entertainment Ltd.

Nearly two years into tortuous merger negotiations to create a $10 billion Indian entertainment giant, Zee wanted the Japanese company to agree to a so-called “hold harmless” clause for its Chief Executive Officer, Punit Goenka, just weeks before the Dec. 21 deal deadline.