In a dramatic twist, Disney Star is considering legal action against Zee Entertainment (ZEEL) following ZEEL’s sudden retreat from a $1.4 billion ICC TV rights deal. This move leaves ZEEL facing legal battles on two fronts, already embroiled in an arbitration dispute with Sony over their abandoned $10 billion merger.
The rescinded agreement granted ZEEL television broadcasting rights for ICC tournaments in India, a lucrative privilege now seemingly lost. Disney Star, holding the original broadcast rights through its Disney Hotstar platform, is understandably miffed and exploring options to recoup its losses as per PTI.
ZEEL’s decision seems intricately linked to the collapse of its merger with Sony. The $1.5 billion investment pledged by Sony included the cricket broadcast sub-licensing agreement, a crucial component that has now crumbled along with the merger.
With ZEEL missing the initial payment of $200 million and showing no signs of moving forward, Disney Star has two legal paths: arbitration if the agreement allows or initiating lawsuits claiming damages.
ZEEL, Disney Hotstar in legal tussle soon
For ZEEL, the fallout is multi-pronged. In addition to Disney Star’s legal threat, they face arbitration proceedings with Sony, who seeks $90 million for breach of contract. Punit Goenka, ZEEL’s Managing Director, remains embroiled in a separate investigation, adding to the company’s mounting troubles.
Despite the turmoil, Goenka urged employees to stay positive and chase new opportunities in a rapidly changing media landscape. He emphasized ZEEL’s 30-year legacy of leadership and value creation, seeking to inspire resilience amidst the legal firestorm.
This unfolding drama leaves cricket fans in India wondering about the fate of international televised matches. Will Disney Star broadcast ICC matches, or will a new player emerge in the ring?
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