1 day Ago
Zee Entertainment Enterprises Ltd. on Wednesday (September 18) informed the stock exchanges that it will strongly contest all unfounded claims by Disney-owned Star India and reserves all its rights. NSE Star India has filed for damages quantified at $940 million (or nearly ₹ 8,000 crore) from Zee.
The media company has categorically refuted all claims and assertions made by Star India including its claims for damages. "The arbitration is at its initial stage and the LCIA Arbitral Tribunal is yet to determine if the company is liable in any manner," it said. According to a filing by Zee, Star has filed a statement of case before the London Court of International Arbitration (LCIA), in which it has sought to declare that the Alliance Agreement between Star and the company has been validly terminated by Star.
LCIA is a private, not-for-profit organization aimed at resolving commercial disputes through arbitration and other proceedings. On March 14, Star had initiated arbitration proceedings against Zee before the LCIA. On August 26, 2022, Star had entered into an alliance agreement with Zee to sublicense ICC TV rights for Men's and Under-19 (U-19) global events for a period of four years till 2027.
However, Zee did not go ahead with the alliance agreement due to the failure of its merger deal with Sony Pictures Networks India. As a standalone entity, Zee would have found it challenging to service the ICC TV rights deal. Zee had communicated to Star India that the alliance agreement cannot be proceeded with and has also sought a refund of ₹ 69 crore that it has already paid.
Shares of Zee Entertainment Enterprises Ltd. were currently trading 0.55% lower at ₹ 132.
25 apiece on the NSE. The stock has declined nearly 55% so far in 2024..
