Sony, ZEE deal off for now amid valuation differences

Sony Corp’s bid to buy Subhash Chandra-controlled Zee Entertainment EnterprisesNSE -1.11 % (ZEE) has been derailed on differences over valuation, pushing a rival consortium of US cable major Comcast to the forefront, four persons familiar with the development told ET. Comcast owns NBC Universal, while its partner for the bid, Atairos, is a $4-billion investment company led by former Comcast chief financial officer Michael Angelakis.

Last month, Sony submitted a non-binding term sheet and was seen as a stronger contender, but differences over valuation and structuring scuppered the deal. Sony, sources said, had initially offered a merger of its existing operations with ZEE but was even open to a cash buyout. On February 19, ET was first to report that Sony, Comcast-Atairos and Apple are the contenders Chandra engaged with seriously. Apple is still in the fray but has been lukewarm in its response and is yet to come back with a firm offer.