Deadline ends. Sony unlikely to stretch talks on $10 bn merger deal with Zee

The $10 billion merger between Sony's India operations and Zee to create the largest media giant has reportedly hit a dead end with Sony unlikely to extend negotiations.

The deadline for the deal, first announced in December 2021, has lapsed. Zee had sought an extension of the "good faith" negotiations last week.

A formal communication calling off the deal may happen in Tokyo exchanges in the next forty-eight hours, ET said in a report.

Zee had earlier told the exchanges that Sony had agreed to extend the deadline in good faith.
"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 and is engaging in good faith negotiations with Sony with a view to discuss the extension of the date required to make the
Scheme effective, by a reasonable period of time," Zee said in an exchange filing.

Sony has been opposed to Punit Goenka's appointment as the MD and CEO of the merged entity since the Securities Exchange Board of India's (Sebi) probe continues to hang over his head. Goenka reportedly had offered to give up the role. A Moneycontrol report says few institutional investors such as Life Insurance Corp. of India (LIC), which owns over 23.5 percent of Zee Entertainment Enterprises Ltd (ZEEL), have urged markets regulator to step in. They reportedly are working on an alternative merger plan if ZEEL MD and chief executive Punit Goenka declines to step down.

Sebi last year alleged that Zee engaged in deceptive practices by falsely claiming the recovery of loans to hide private financing deals linked to Zee Chairman Subhash Chandra.