According to Reuters on Thursday, Zed Entertainment Enterprises Ltd. informed Walt Disney that it would not be proceeding with the agreement to pay approximately $1.4 billion for the cricket TV rights it had purchased from the US company.
In August 2022, Zed informed stock exchanges that it had inked a strategic licensing agreement with Disney to acquire from the US company, who remained in possession of the streaming rights, certain International Cricket Council TV broadcast rights for a four-year period beginning in 2024. The move was anticipated following Sony's Monday $10.5 billion merger agreement termination with Zed.
Disney Star granted Zed Entertainment Enterprises a license in 2022 to use some of the ICC rights it had acquired for the Indian market. According to the agreement, Disney Star will keep the digital rights to the ICC men's and Under-19 championships in India for the 2024–2027 cycle, while Zed will broadcast the events. The 2024 and 2026 T20 World Cups, the 2025 Champions Trophy, and the 2027 ODI World Cup are the four men's major events of the 2024–2027 calendar.
Disney Star may take legal action against Zed in the event that the latter breaches the terms of their sublicensing agreement for ICC TV. A legal expert told Economic Times this month that "Disney Star would not hesitate to take Zed to court if it fails to honour the agreement."
On January 9, Bloomberg News revealed that the broadcaster had missed a deadline to pay $200 million in early January. Zed stated that the purchase of the ICC TV rights is "subject to certain conditions precedent, including submitting financial commitments, guarantees, and ICC approval for sub-licensing to the firm, which are pending" in its FY23 annual report.
As global streaming behemoths like Netflix and Amazon.com compete for market dominance, Zed has been battling dwindling profits, advertising revenue, and financial reserves. The $10 billion merger between Sony Group Corp. and Zed Entertainment, which was set to happen on Monday, has been called off due to disagreements over who will be in charge of the combined company.
