India's Zee Reportedly Fumbles $200M Disney Payment, Deepening Woes Amid Sony Merger Uncertainty

Zee Entertainment Enterprises Ltd., a major media firm in India, has reportedly missed a crucial payment deadline, failing to transfer $200 million to Walt Disney Co's DIS India unit for television rights to cricket matches.

This development comes as Zee strives to conserve cash amid looming challenges, including a potential collapse of its planned merger with Sony Group Corp SONY.

Related: Zee Entertainment Reportedly Squashes Rumors: Firm On Sony Deal Amid Speculation Swirl

In a contract signed in August 2022, Zee Entertainment committed over $1.4 billion for the license agreement with Disney. However, the company did not fulfill the installment due in early January, citing a cash shortage, reported Bloomberg, citing sources familiar with the matter.

The report added that Disney is seeking explanations for the missed payment, which has raised concerns about possible legal complications for Zee.

Zee's failure to provide bank guarantees for the due sum as per the agreement adds to the firm's woes, as per the report.

This financial strain comes at a time when Zee had pinned hopes on the TV rights to bolster viewership and attract more advertisers in India, a country with a strong cricket fanbase.

Price Action: DIS shares are trading lower by 1.08% at $90.56 on the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.