Sony Group Corp has convened a board meeting to make a crucial decision regarding its $10-billion merger with Zee Entertainment Enterprises in India. The merger, initially announced two years ago with the aim of creating the country's largest broadcast company, is under scrutiny due to strained negotiations and unresolved issues.
Sony and Zee have faced disagreements regarding Zee's Managing Director and Chief Executive Officer, Punit Goenka, leading the merged entities. Sony has been advocating for NP Singh, its India MD and CEO, to serve as the chief executive of the new entity in the interim unless Goenka is exonerated in all pending cases.
In spite of Goenka offering to step down from his role as CEO post-merger on Thursday, Zee has not yet agreed to N P Singh's appointment as head of the merged corporation. Following the news of Goenka stepping down, Zee Entertainment shares rallied over seven per cent yesterday.
The merger deal was expected to be completed by December 20, 2023. However, a one-month grace period was added to resolve ongoing issues, which expire on Saturday, January 20. Earlier this month, Zee vehemently denied reports emerging of the merger falling through.
An official statement from Zee read, "We wish to reiterate that the company is committed to the merger with Sony and is continuing to work towards a successful closure of the proposed merger." Sony did not make any official statement to the exchanges.
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