The dispute centres around the company’s failure to meet payment deadlines, agreed as part of a US$1.4 billion licensing deal
WALT Disney’s Indian unit has sought US$940 million in damages from Zee Entertainment, after the Mumbai-based broadcaster defaulted on payment for TV rights of cricket matches.
Disney Star filed the claim for damages and termination of the alliance pact before the London Court of International Arbitration, Zee Entertainment said on Wednesday (Sep 18).
Star is also seeking costs, expenses and applicable interest until full payment, while refuting all claims, including the demand for damages.
The dispute centres around Zee’s failure to meet payment deadlines, agreed as part of a US$1.4 billion licensing deal with Star.
The tie-up gave the Indian broadcaster exclusive TV rights for men’s matches of the International Cricket Council.
The arbitration is at its initial stage, and the tribunal is yet to determine if the company is liable in any manner, Zee noted.
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The latest claim for damages comes as Zee announced its settlement with Sony Pictures Networks India after a failed merger.
The planned deal was called off after the Japanese company accused the Indian firm of failing to meet merger agreement conditions.
Separately, Walt Disney plans to create a US$8.5 billion entertainment company with a large share in cricket broadcasting rights.
This comes after it signed a binding agreement in late February to combine its India unit with Viacom 18 Media – a part of billionaire Mukesh Ambani’s media empire. BLOOMBERG
