Zee quits $1.4bn cricket TV rights deal with Walt Disney
What's the story
Zee Entertainment has reportedly backed out of a deal with Walt Disney, to acquire cricket TV rights for an estimated $1.4 billion, according to Reuters. In August, Zee revealed that it had entered into a strategic license deal with Disney, to take over certain International Cricket Council (ICC) TV broadcast rights for four years beginning in 2024.
Problems
Shadow of Zee-Sony failed merger on this deal
As of now, neither Zee Entertainment nor Disney has issued an official statement regarding the matter. However, the termination of Zee's $10 billion merger with Sony might have played a role. The potential deal first announced three years and four months ago, came to an end after months of fruitless negotiations. In fact, Sony is asking for a $90 million termination fee, and also invoking arbitration against Zee. Zee is now staring at a paucity of funds.
Stock
A look at Zee's share prices
Today on the National Stock Exchange (NSE), Zee opened at Rs. 167 per stock, and closed at Rs. 164.75. It is down 0.96% compared to the previous day. Meanwhile, on the Bombay Stock Exchange (BSE), it opened at Rs. 167.30 per share, and ended at Rs. 163.25 (down 1.86% in comparison to yesterday).