The outcome of the long awaited Zee-Sony merger is poised to be revealed in the coming week, reported Bloomberg. With an imminent deadline, both companies are compelled to either reconcile their differences and proceed with the deal or risk its falling apart.
Stakeholders are uncertain whether the issue can be solved before the December 21 deadline.
The Zee-Sony merger announced in December 2021 is set to create a media powerhouse worth $10 billion.
According to reports, Sony could be sending a letter next week to Zee informing them how the demands of the deal weren’t met.
As per initial plans, Zee Entertainment Enterprises Ltd (ZEEL)’s Punit Goenka was to take the position of MD and CEO of the merged Zee-Sony enterprise
However, Sony Group Corp has been pushing for its own India executive NP Singh to become the CEO of the newly forming Zee-Sony entity due to the stringent corporate governance norms in Japan and the US.
Goenka on the other hand has made it clear that he wants to be the MD and CEO, especially after SAT overturned SEBI’s decision of not allowing him to hold directorial roles.
In their annual report, MD and CEP Punit Goenka said that significant efforts are being in expanding the boundaries in the digital ecosystem and the company is committed to its long-term strategic intent of enhancing our presence across screens and formats.
“On the Company’s proposed merger with and into Culver Max Entertainment Pvt. Ltd., I would like to update all of you that further to your approval, the proposed merger has also received clearances from the key regulatory authorities and National Company Law Tribunal (NCLT), Mumbai. The Company will continue to take the next steps in accordance with the law,” Goenka said in the annual report.
A little over a month back, Sony issued a statement that said, “Although the transaction was previously expected to close by the end of the first half of the fiscal year ending on March 31, 2024, based on the latest progress, it is currently expected to close in the months ahead. Sony continues to assess the impact of the transaction on its consolidated financial results. Both companies continue to proceed with the necessary procedures to complete the transaction.”
Following its merger with Sony Entertainment India, Zee Entertainment Enterprises Ltd. (ZEEL) is set to be delisted from FTSE Global Equity indices. Culver Max Entertainment, the entity representing Sony Pictures Networks India, will replace ZEE in the indices.