Sony Pictures is reportedly reconsidering its merger with Zee Group, contemplating a withdrawal due to a leadership dispute over who should helm the $10-billion merged entity. The original agreement designated Puneet Goenka, the current MD and CEO of Zee Entertainment, as the leader of the merged entity. However, Sony is now reevaluating Goenka’s role following market regulator Sebi’s prohibition on him becoming the managing director due to allegations of fund diversion.
Sources suggest that Sony may submit a termination notice before the extended deadline of January 20 for completing the merger, citing unmet conditions necessary for the merger’s fulfillment. The merger, announced by Sony and Zee in December 2021, outlined a structure where Sony would hold a 50.86% stake, Zee promoters 3.99%, and other Zee shareholders 45.15% in the combined entity. The disagreement over the leadership role, particularly concerning Goenka’s position, has become a sticking point, with Sony Group opposing his leadership while Zee Group insists on honoring the original agreement.
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