Sony may call off $10 bn merger deal with Zee

New Delhi, January 8

Japan’s Sony is planning to scrap the merger of its Indian unit with Zee Entertainment (ZEE), more than two years after the deal was announced, over a disagreement on who will lead the $10 billion entity, a news agency reported on Monday.

Plans to file termination notice

• Sony plans to file a termination notice before the extended January 20 deadline to close the merger
• The deal to merge Zee and Sony’s TV channels has been delayed after SEBI, in August last, barred Zee CEO Punit Goenka from directorships of any listed company
• An Indian tribunal, however, lifted the ban on Goenka in October but said he would have to cooperate with any investigation by the country’s markets regulator

Sony plans to file a termination notice before the extended January 20 deadline to close the merger, it was reported, citing people familiar with the matter. It added that discussions between Sony and Zee were still ongoing.

Zee and Sony did not immediately respond to a request for comment. In November, Sony pushed for NP Singh, the managing director of its Indian operations, to head the merged company, instead of Goenka, a local business daily had reported. — Reuters