We are fully geared to address the Star arbitration case in London: ZEEL

Star India filed for arbitration against Zee in August 2024, claiming that the latter had violated its 2022 partnership agreement

by e4m Staff
Published: Oct 19, 2024 7:23 AM | 2 min read

In the earnings call of Q2 FY25, Zee Entertainment Enterprise Ltd shared that the company was “fully geared to address” the Star arbitration case in London.

“As far as the status of that Star case is concerned, they have put the claims that you may have seen already in the press.”

“Now, we are supposed to respond to that by the end of this quarter, which we will be doing. And then, of course, the proceedings will start in the arbitration courts in London that we are fully geared to address,” a Zee executive said.

Star India filed for arbitration against Zee in August 2024, claiming that the latter had violated its 2022 partnership agreement and demanding $940 million in damages. This followed Star's allegation of a breach of contract after Zee allegedly failed to make a significant payment of $203.56 million in December 2023. After that, Star ended the contract, which sparked a wave of lawsuits and counterclaims.

ZEEL announced a series of investor meetings in Singapore from September 25 to 27, 2024, immediately following Star's arbitration complaint. This action is a component of their plan to explain their stance and comfort investors throughout the chaos.

ZEEL has vehemently denied Star's assertions in a regulatory filing to the Securities and Exchange Board of India (SEBI), stating their intention to firmly dispute all of the accusations.

Analysts predict that the continuing disagreement will cost ZEEL Rs 1,520 crore in FY25, mostly because of reduced sports ad revenue and hefty content costs, as their shares recently fell 56% from a 52-week high.