New Delhi, Jan 8: Sony Group Corp is planning to call off the merger pact of its India unit with Zee Entertainment Enterprises, capping two years of drama and delay in creating a $10 billion media giant, said people familiar with the matter, as per media reports.
The Japanese conglomerate is looking to cancel the deal due to a standoff over whether Zee’s Chief Executive Officer Punit Goenka, also its founder’s son, would lead the merged entity, the people said, asking not to be named as the information is not public, Bloomberg reported.
While the agreement signed in 2021 was that Goenka would lead the new company, Sony no longer wants him as CEO amid a regulatory probe, the people said.
Sony plans to file the termination notice before a January 20 extended deadline for closing the deal, saying some of the conditions necessary for the merger had not been met, one of the people said, Bloomberg reported.
Goenka has stood his ground in wanting to helm the merged entity, as agreed initially, over prolonged meetings in the past few weeks, according to another person.
Discussions are still ongoing between the two sides and a resolution can still emerge before the deadline, Bloomberg reported.