New Delhi: Walt Disney’s Indian division is demanding $940 million in damages from Zee Entertainment Enterprises Ltd., extending a legal dispute with the Mumbai-based broadcaster. This claim follows Zee’s failure to pay for TV rights to cricket matches, according to a filing by Zee Entertainment on Wednesday.
Disney Star, formerly known as Star India, has taken the case to the London Court of International Arbitration. Along with the $940 million in damages, Disney Star is seeking reimbursement for costs, expenses, and interest until the full amount is paid. Zee Entertainment has denied all claims, including the demand for damages.
The disagreement stems from Zee's inability to meet payment deadlines under a $1.4 billion licensing deal with Disney Star. This deal gave Zee the exclusive TV rights to men’s cricket matches organized by the International Cricket Council (ICC).
The arbitration process is still in its early stages, and the tribunal has not yet decided whether Zee is liable.
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This new legal battle comes as Zee Entertainment recently resolved another legal issue with Sony Pictures Networks India. The dispute with Sony arose from a failed merger deal, which was canceled after Sony claimed Zee did not meet the merger conditions.
In a separate development, Walt Disney has agreed to merge its Indian unit with Viacom 18 Media Pvt., a part of billionaire Mukesh Ambani’s media empire. This merger, announced in late February, will create an $8.5 billion entertainment company with a significant stake in cricket broadcasting rights.
(With Reuters Inputs)
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