OYO Rooms dumps rival Zo after buyout promise, sparks retaliation

ZO's assets include a network of 11,000 rooms in 1,000 hotels across more than 50 cities and towns in India

SoftBank-backed budget aggregator OYO Rooms said on Friday it has called off all discussions to acquire smaller rival ZO Rooms, two years after it first initiated talks.

The move by OYO prompted a legal threat from ZO, backed by US hedge fund Tiger Global, which says "Oyo is resailing from the contractual terms after acquiring the entire ZO Rooms business by March 2016. This is not an act of good faith and ZO takes a very serious view of the matter and will take all steps to protect its interests and enforce its rights." 

In February 2016, SoftBank had confirmed OYO's acquisition