Culver Max Entertainment Ltd (aka Sony Pictures Network India) management is committed to long-term growth in India and the company will “actively explore new organic and inorganic possibilities” to strengthen its presence in the country, managing director and CEO NP Singh has stated.
In a letter addressed to employees on Wednesday, two-days after the termination of the $10 billion merger deal with Zee Entertainment Enterprises Ltd (ZEE), Singh said the company’s immediate focus will be on boosting subscriber growth and revenues (worded differently that could also mean business as usual at least in the near term).
In the internal email made available to media, Singh says: “Our journey towards the merger has been remarkable, showing us how resilient and dedicated we can be when working towards a common goal. As we transition from this phase, I am, along with the senior management team, committed to setting the company up for a long-term, strong future. We will actively explore new organic and inorganic possibilities to strengthen our market presence.”
“As we close the chapter on our proposed merger with ZEEL, I want to take a moment to talk to you – not just as your CEO but as someone who has been on this journey with you. This change in our plans allows us to step into a new phase of our story, which I believe is full of promise,” Singh wrote in the letter.
He further said, “As we transition from this phase, I am, along with the senior management team, committed to setting the company up for a long-term, strong future. We will actively explore new organic and inorganic possibilities to strengthen our market presence.” Reflecting on the two year since the proposed merger with ZEEL was announced, he said, ”Our journey towards the merger has been remarkable, showing us how resilient and dedicated we can be when working towards a common goal.”
In the letter, Singh exhorted the employees “to turn our attention back to the heart of our work – our current projects, our fantastic team, and the audiences who count on us”.
“Our immediate focus will be back on unleashing our full potential, continuing to craft content that not only engages our audience but also boosts subscriber growth and revenues, thereby nurturing a culture rooted in excellence, pivotal for our ongoing growth and success,” he said.
Singh said the media and entertainment world is constantly changing and “our journey is not just about adapting to change; it’s about leading it”.
On Monday, Sony Group Corp, the Japanese parent company, announced the termination of the merger agreement with ZEE, while seeking $90 million for “breach of conditions” besides initiating arbitration.
In a statement, Sony Group Corporation (SGC) said ZEE did not satisfy the merger conditions despite engaging in discussions to extend the end date for consummation of the transaction.
Sony said it was “extremely disappointed that the conditions to the merger were not satisfied” by the deadline, which had been set as January 21. The company added that it “remained committed to growing our presence” in India.
According to a media report, Sony Group has already moved Singapore International Arbitration Center (SIAC) claiming $100 million (around Rs 748.5 crore).
On December 22, 2021, Sony Pictures Networks India (SPNI) and ZEE had entered into a definitive agreement to merge, with a two-year deadline. This was extended for a month in December last year.
The deal would have created an entertainment conglomerate with more than 70 Indian TV channels, popular Bollywood studios and an extensive film library to take on global powerhouses Netflix and Amazon.
