The infamous Sony Group Corp has officially sent a notice to Zee Entertainment Enterprises Ltd, to call off the merger between Sony’s India unit and the media network. Hence, attacking by ending the two-year acquisition saga, Zee is vulnerable to competition as the number of rivals increases.
Meanwhile, the notice by the Japanese entertainment group was sent early on Monday and is expected to be disclosed after an exchange letter is received by the group. Meanwhile, the news was disclosed by people familiar with the plan; however, they refused to reveal their identity.
According to the alleged letter seen by Bloomberg, Sony mentioned as conditions mentioned in the merger agreement weren’t met, they decided to call it off.
Besides, the termination letter stalemate between the companies over whether Zee’s Chief Executive Punit Goenka would lead the merger into an investigation into his conduct by India’s Capitals Market Regulator.
On the contrary, the termination letter came after a 30 grace period over a weekend when the two sides couldn’t reach an agreement on a deadline set Last December.
Despite the broken merger agreement, neither Sony Group Corp nor Zee Entertainment approved a comment with media sources.
The media house, Bloomberg News, reported that on January 8, Sony was planning to call off the merger. Meanwhile, Zee Entertainment reported that they were still in talks to complete the needs of the merger.
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The disagreement between Sony and Zee Entertainment Group over who would lead the merger company became the major reason for termination. While, according to an initially-signed pact in 2021, it was decided that Punit Goenka would lead the company. However, owing to Puneet’s ongoing investigation, Sony was hesitant to do so which resulted in the decision to call off the merger.
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