Talks on the merger between Zee Entertainment Enterprises Ltd. and Sony Pictures Networks India have been stalled over the latter’s last-minute demand that its executive lead the merged entity instead of Punit Goenka as agreed before. Failure to reach a consensus by the December 21 deadline may derail the merger.
In a scheme of arrangement signed by Zee and Sony on December 21, 2021, the two media houses had agreed that Punit Goenka, currently managing director and CEO of Zee, would continue in the same position in the merged entity for five years. Know-alls reveal that Sony views the SEBI allegations of financial impropriety against Punit and his father, Subhash Chandra, and the consequent investigations as corporate governance issues and, therefore, wants to place its own executive at the top.
