© Reuters.
Bloomberg reported Monday that Sony (NYSE:) is set to call off the merger of its India unit with Zee Entertainment Enterprises Ltd.
Citing people familiar with the matter, the publication said Sony is planning to cancel the deal. This is based on a standoff regarding whether Zee’s CEO Punit Goenka, also its founder’s son, would lead the merged company.
According to Bloomberg, Sony is planning to file the termination notice before the extended deadline for closing the deal on January 20. They claim that some of the required conditions for the merger had not been met. A move to cancel the merger would cap two years of delay in creating a potential $10 billion media giant.
The original agreement, signed in 2021, said Goenka would lead the new company. However, due to a regulatory probe, Sony is believed to no longer want him to lead the combined company.
Goenka is said to have remained firm in wanting to lead the merged entity during meetings in the past few weeks. Furthermore, Bloomberg cautioned that discussions are still ongoing between the two sides, and a resolution could still emerge before the deadline.
