Zee Entertainment Seeks to Revive $10 Billion Merger with Sony
Zee Entertainment Pushes for Revival of Merger Deal with Sony
India’s Zee Entertainment is reportedly making a final attempt to restart discussions with Japan’s Sony Group to revive their $10 billion merger deal, which was initially scrapped on Jan. 22. Economic Times reported that representatives from both parties have been working to salvage the deal, with efforts gaining momentum over the past two weeks.
Challenges in Reviving the Merger Deal
The report added that there is a chance the discussions might fail as significant differences remain unresolved, and both sides are standing firm on their positions. Sony terminated the merger with Zee due to certain unresolved “closing conditions” and leadership disputes, including disagreements over CEO Punit Goenka’s involvement in regulatory issues.
Expectations Regarding the Merger Outcome
Zee is expected to notify Sony within the next 24-48 hours regarding its willingness to accept all terms and conditions and proceed with the merger. If not, Sony is expected to withdraw its original merger application with the National Company Law Tribunal (NCLT) by the end of this week, as agreed upon when the merger was initially proposed.
Impact of the Failed Merger
The Zee-Sony merger, in the works for two years, would have created an Indian television juggernaut with more than 90 channels across sports, entertainment, and news, competing with the likes of Walt Disney and billionaire Mukesh Ambani’s Reliance Industries. Shares of Zee rose 5.2% in early trading on Tuesday.