The last step in abandoning a two-year-old plan to establish a $10 billion media behemoth is Sony's withdrawal of the agreement to merge its India businesses with Zee Entertainment Enterprises from NCLT. To withdraw from the merger agreement with Zee, the Japanese entertainment company filed many applications with the NCLT.

Legal squabbles will probably go on even while the court documents formally end the protracted story that was marred by delays, turmoil over the direction of the combined company, and a regulatory investigation against Zee's founders.

On January 22, Sony served Zee with a notice of termination for noncompliance with the terms of the merger agreement, requesting $90 million in break-up fees. Zee "categorically" refuted any violation of the agreement made public in December 2021.

The failure of the acquisition has also made both businesses more susceptible as their competitors assemble. With the announcement of the merger of their India media operations on Wednesday, Reliance Industries Ltd. and Walt Disney Co. would become the largest broadcasting and digital corporation in the world's most populated country, with a combined valuation of $8.5 billion.

Other industry participants, like Zee, would suffer from the Reliance-Disney merger as they will have to contend with a far bigger organization. Emkay Global Financial Services Ltd.'s Pulkit Chawla, a sector analyst, submitted a report on Thursday. "Ads and content creators are probably going to favor the Reliance-Disney company since it will serve the broadest audience base," Chawla stated.

It was reported earlier this week that Sun TV Networks, a broadcaster, and Sony's local division had started preliminary discussions about purchasing a strategic position in Arha Media & Broadcasting, the company that operates the Aha video platform. Later on, Sony refuted it, claiming it was just idle rumors.