In what can be seen as a significant development, Zee Entertainment Enterprises and Japan’s Sony Group reportedly have an additional month, beyond the December 21-deadline to finalise their deal of India operations worth $10 billion. As per the reports by various media houses, this merger agreement was initially signed in 2021 and it incorporated a 30-day grace period for potential extensions. The grace period was extended to resolve the uncertainties regarding the merger and the leadership structure of the combined entity. The development came after Sony India, earlier on December 19, said that Zee had requested to postpone the effective date of their merger. Sony added that it has not yet agreed to extend the deadline by one month. Sony India, in a statement, informed that it also wants to hear “Zee’s proposal before deciding on an extension.”
For those unversed, both the satellite giants, Sony and Zee, announced the deal two years ago. Under the deal, they were expected to merge their TV channels, streaming platforms, and film assets. However, it got delayed after the markets regulator barred Zee CEO Punit Goenka from holding the position of director of any listed company in August last year. Months after the same, the Securities Appellate Tribunal (SAT) lifted the ban on Goenka, thereby allowing him to continue with his role in the merger with Sony Group’s Indian unit.
As per the reports, the bone of contention between the two parties is the leadership of the merged entity. While Zee wants Punit Goenka to the firm, Sony is not confident to move on with his candidature due to an ongoing Securities and Exchange Board of India (SEBI) investigation against Goenka. Notably, Sony Pictures Networks India Pvt — if there is a merger — will have a 50.86% stake in the new entity, while Zee founders will own 3.99%. The remaining shares will be owned by public shareholders, as per the merger deal terms disclosed in the past.
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