Zee Entertainment Enterprises Limited has decided to terminate its $1.5 billion agreement with Disney Star for the International Cricket Council (ICC) TV rights for the 2024-27 period, according to sources familiar with the matter.
The cancellation of the deal marks the conclusion of uncertainty surrounding the contract. However, Disney may pursue legal action against Zee for not honoring the agreement, which was originally signed in August 2022. Despite attempts to reach out to Zee for comment, the company did not respond, while Disney Star declined to provide any statement on the issue.
Star Sports, a subsidiary of Disney, is currently broadcasting the tournament on television, with digital coverage available on Disney+ Hotstar. Disney Star had initially secured both the TV and digital rights for ICC tournaments for the 2024-27 period for $3 billion in August 2022, subsequently sub-licensing the TV rights to Zee shortly after acquiring the property.
Media analysts suggest that Zee's decision to terminate the sub-licensing deal with Disney Star may be linked to the collapse of its proposed merger with Sony. The merger, which would have infused $1.5 billion in cash into the combined entity, was called off earlier in the week by Sony. Consequently, fulfilling the agreement with Disney Star would have posed challenges for Zee without the merger with Sony.
Karan Taurani, Senior Vice President of Research at Elara Capital, noted, "Zee's decision not to honor the Disney TV rights contract aligns with expectations, given that it relied on the proposed merger with Sony for fulfillment." Taurani added that this move could lead to further legal complications for Zee, compounding existing legal disputes with Sony.
In a related development, Zee announced its intention to approach the Mumbai bench of the National Company Law Tribunal (NCLT) against Culver Max Entertainment and Bangla Entertainment, also known as Sony Pictures Networks India. Zee seeks the withdrawal of a termination notice issued by Sony and urges the implementation of the merger scheme sanctioned by the tribunal last year.
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