Sony Group Corp has reportedly convened a board meeting scheduled for Friday to make a crucial decision regarding its STILL flailing in the waters plan for a $10-billion merger with Zee Entertainment Enterprises in India.
Economic Times reported that two key meetings would be held Friday, following which a final call on the merger deal would be taken. The ET report indicated that Sony may abandon the deal unless ZEE MD and chief executive Punit Goenka agreed to the outlined merger terms.
A media report indicated on Thursday that Goenka has offered to step down from the chief executive role in a bid to salvage the deal.
In the event of the merger's failure by Saturday January 20, ZEE may consider legal action against Culver Max Entertainment, the entity previously known as Sony Pictures Networks India, potentially claiming damages, India Today reports.
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.
The merger deal suffered several setbacks after being finalised in 2021. Market regulator Securities and Exchange Board of India (SEBI) had initiated action against ZEE's Goenka and his father Subhash Chandra, following which Sony expressed concerns about the merger deal.
However, the Securities Appellate Tribunal (SAT) set aside the market regulator's earlier order that prevented Goenka from assuming a leadership position in ZEE or any of its conglomerates.
As per the 2021 merger deal agreement, Sony Pictures Networks India would have held a 50.86 per cent stake in the merged media entity, with Goenka's family owning 3.99 per cent and the remaining stake in the public domain.
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