Zee walks back on $1.4-bn TV cricket rights deal with Disney, says report

Zee Entertainment Enterprises Ltd has conveyed to Walt Disney it does not intend to move forward with a deal to pay around $1.4 billion for cricket TV rights it acquired from the US firm, reported Reuters on Thursday.

Zee, in August 2022, told stock exchanges it had signed a strategic licence agreement with Disney to take over certain International Cricket Council TV broadcast rights for four years starting 2024 from the US firm, which continued to retain streaming rights.

The development was expected after Japan's Sony had terminated a $10.5-billion merger deal with Zee on Monday.

In 2022, Disney Star had licensed a part of the ICC rights it won for the Indian market to Zee Entertainment Enterprises. The agreement meant that Zee will broadcast the ICC men's and Under-19 tournaments in India for the 2024-27 cycle, while Disney Star retains the digital rights for the same events.

There are four men's marquee events in the 2024-27 period, including two T20 World Cups (2024 and 2026), the 2025 Champions Trophy and the 2027 ODI World Cup.

If Zee fails to honour its ICC TV sub-licensing deal with Disney Star, the latter might explore legal options. "Disney Star would not hesitate to take Zee to court if it fails to honour the agreement," a legal expert told Economic Times last month.

The broadcaster missed an early-January deadline to pay $200 million, Bloomberg News reported on January 9.

In its FY23 annual report, Zee had said that the acquisition of 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".

Zee has been contending with declining profits, advertising revenue and cash reserves in a market where global streaming giants such as Netflix and Amazon.com are also jostling for share.

Sony Group Corp on Monday said it is calling off a $10-billion merger of its India unit with Zee Entertainment, following a stalemate over who will lead the merged entity.