Sony has officially notified Zee Entertainment Enterprises Ltd. that it is calling off the merger between its India unit and Zee. Reportedly, Sony has sent Zee its termination letter, ending two years of efforts from both the sides to see the deal through.
According to Sony, the conditions of the merger agreement were not fulfilled by Zee, prompting it to terminate the contract. The stalemate arose because Zee’s Punit Goenka was to be appointed CEO of the merged entity as per terms of the merger agreement. During the merger process, the SEBI ordered an investigation against Punit and his father, Subhash Chandra, relating to the financial affairs of Zee. Following this, Sony insisted that its nominee would head the merged company, which was not acceptable to Goenka.
Following the deal falling apart, the dream of a $10 billion media entity has been dashed to the ground.
It may be recalled that the merger contract, signed in September 2021, expired in December 2023, when both the parties agreed to a 30-day grace period. That ended on January 21, 2024.