New Delhi/Bengaluru, January 22: Sony Group Corporation reportedly sent a termination letter to Zee Entertainment Enterprises Ltd. to call for a $10 billion merger of their Indian operations. According to the report, Zee Entertainment Enterprises was notified to call off the merger between its India unit and media network. The deal was considered very 'crucial' for the survival of the company.
According to a report by Reuters, the merger agreement is terminated due to unmet conditions. The report said the merger was announced over two years ago; however, it hit a stalemate over the person leading the company. Zee Entertainment Enterprises proposed CEO Punit Goenka. However, Sony disagreed because of an investigation into Goenka's conduct by India's capital market regulator. Sony declined to comment on this matter. Ram Mandir Inauguration: Several Key IT and Tech Leaders Reach Ayodhya To Witness Pran Pratishtha Ceremony of Ram Temple.
As per the Reuters report, ZEE was committed to the merger and was to close the deal through 'good faith negotiations'. The extension was reportedly to be discussed on January 20. On January 8, Bloomberg News reported that the merger was about to be called off as both sides failed to resolve the dispute over leadership. According to the report by NDTV, if the CEO Punit Goenka was ousted from financially deteriorating ZEE, Sony could reconsider another merger. ZEE's profit reportedly dropped 95% for the year ended March 31 to 478 million. Social Media Use Is Associated With Risk for People With Highly Materialistic Mindset, Can Increase Stress and Unhappiness in Them by Scrolling Down Other’s Post: Report.
The Zee Sony deal had reportedly received all the necessary regulatory approvals before the collapse. It would have created an entertainment giant with Sony owning a 50.86% stake and the Geonka family owning 3.99%. ZEE currently faces financial vulnerability and anxiety from investors. Besides these problems, the company has to compete with the Walt Disney Co. and Reliance Industries Ltd., which will likely be merged for media operations by February 2024.
(The above story first appeared on LatestLY on Jan 22, 2024 01:03 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).