Sony Group Corp. Set to Terminate $10 Billion Merger Deal with Zee Entertainment Over Leadership Dispute

In a significant turn of events, Sony Group Corp. is poised to call off the much-anticipated merger pact with Zee Entertainment Enterprises Ltd., marking the conclusion of a tumultuous two-year journey fraught with drama and delays. The $10 billion merger aimed at creating a media powerhouse is now on the brink of collapse due to an impasse regarding the leadership of the merged entity.

Sources familiar with the matter, speaking on condition of anonymity, revealed that Sony’s decision to terminate the deal stems from a standoff centered on whether Zee’s CEO, Punit Goenka, would assume leadership of the merged company. While the initial agreement in 2021 stipulated Goenka’s leadership role, Sony is now reluctant to proceed with him as CEO, citing ongoing regulatory scrutiny.

With a deadline looming on January 20 for finalizing the merger, discussions between the two parties continue, though the resolution remains uncertain. This development not only leaves Zee vulnerable to potential defaults but also occurs at a critical juncture, coinciding with Mukesh Ambani’s efforts to strengthen Reliance Industries Ltd.’s media ventures through negotiations for a merger with Walt Disney Co.’s India unit.

Pic Courtesy: google/ images are subject to copyright