InvestorQ : What is the $100 million separation fee in the Zee Sony merger agreement?
Chandralekha Desai made post

What is the $100 million separation fee in the Zee Sony merger agreement?

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NISHA Nayak answered.
5 months ago
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While nothing has been confirmed by Zee or Sony, experts have estimated that there could be a $100 million severance clause in the Zee Sony merger deal. Both had agreed to merge their operations in a massive $7 billion deal. The expensive exit clause is that if either Zee or Sony decide to end the merger, then the termination feel payable would be an incredibly high $100 million.

Any break-up will be awfully expensive. Of course, this clause will only kick in after the shareholders and regulators give the requisite approvals for the merger. This may be a big limiting factor for dissenting shareholder, Invesco, which is yet to say whether it will vote for or against the merger.

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