The entertainment giant Zee Entertainment missed paying Disney a $200 million fee for TV rights for cricket matches.

Oftentimes, when we report news about the Walt Disney Company, it has to do with the company’s operations, be that of the Disney theme parks or even the cinematic and streaming performance of their film and television productions. This said, running a company—even one primarily meant to provide entertainment—is a business.

And when it comes to the business side of things, the road is not always smooth.

Related: Disney Will Never Be The Same: Company Part of One of Biggest Entertainment “Mega-Mergers”

Zee Entertainment Defaults on $200 Million Payment to Disney

In August 2022, Zee Entertainment Enterprises Ltd. entered a $1.4 billion agreement with the Walt Disney Company in which the companies agreed that Zee would hold the license to exclusive TV rights for International Cricket Council men’s matches in India till 2027, while Disney Star would hold the digital streaming rights.

As part of this deal, Zee Entertainment had a $200 million payment coming up that was due, and per the latest reports, the company missed the $200 million payment deadline.

🚨 Zee Entertainment missed a $200 million payment deadline to Walt Disney Co.'s India unit for TV cricket rights due to a cash crunch. The payment was part of a $1.4 billion agreement from August 2022.: Reports Moneycontrol

Live Update https://t.co/l4hswUWp5t#ZEEL $DIS https://t.co/bZcY7F2lzp pic.twitter.com/IHqLY3qsyA

— BigBreakingWire (@BigBreakingWire) January 9, 2024

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As reported by Investing.com, this could well likely be because Zee is experiencing a cash crunch and is trying to “preserve cash” ahead of a mega-merger with Sony Group Corp.

The payment defaulting brings new challenges for Zee Entertainment Enterprises, including potential legal issues. The company is already struggling. There are rumors that the Zee-Sony merger may not go through.

Additionally, an anonymous source reported that “Zee hasn’t furnished bank guarantees for the sum that was to be paid as per the contract, according to one of the persons familiar with the issue.”

On Monday, Bloomberg News reported that Sony was going to send Zee a deal termination notice, and on Tuesday, Zee released a statement that said they were still working toward the merger.

Disney, for its part, has sought an explanation from Zee as to why the payment was skipped.