India’s Zee Entertainment is reportedly making a last-ditch effort to restart discussions with Japan’s Sony Group in hopes of resurrecting their $10 billion merger deal, which was scrapped on 22nd January, reported The Economic Times on Tuesday.
According to the report, representatives from both Zee and Sony have been diligently working to salvage the deal, with recent efforts to revive the merger gaining traction over the past fortnight. However, significant differences between the parties remain unresolved, and both sides are purportedly maintaining steadfast positions, raising concerns over the potential failure of the discussions.
However, no official comments have been provided by Zee and Sony on the matter.
The merger between Sony and Zee was abruptly terminated by Sony, citing unresolved “closing conditions” and leadership disputes, including disagreements over CEO Punit Goenka’s involvement in regulatory matters.
According to a news report, sources suggested that Zee is expected to convey its decision to Sony within the next 24-48 hours, indicating whether it is willing to accept all terms and conditions and proceed with the merger. Failure to reach an agreement could result in Sony withdrawing its original merger application with the National Company Law Tribunal (NCLT) by the end of the week, as per the terms agreed upon during the proposal of the merger.
The proposed Zee-Sony merger, in the making for two years, aimed to create an Indian television powerhouse boasting over 90 channels spanning sports, entertainment, and news, poised to compete with industry giants like Walt Disney and Reliance Industries, led by billionaire Mukesh Ambani.
Following the reports, shares of Zee surged by 5.2% in early trading on Tuesday, reflecting investor optimism amid renewed hopes for the merger’s revival.
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