According to industry reports, Sony Group and Zee Entertainment are currently in talks regarding their proposed US$10 billion merger, which is set to continue until January 20.
The merger between Sony and Zee has been in the works since 2021.
The news comes a day after Zee Entertainment clarified news reports highlighting Sony’s plans to pull the plug on the merger, calling them “baseless” and “factually incorrect.”
Zee Entertainment had also mentioned that they are committed to the completion of the merger and are working towards a successful completion of the same.
BMA understands that Sony planned to file a termination notice before the deadline over an impasse on whether Zee CEO Punit Goenka, facing a regulatory probe, will lead the merged company.
“Zee or Sony has nothing to gain if the deal falls apart. The stock price will correct even more from the current levels, and the minority is at a disadvantage. Even Sony, for that matter – although it’s not a listed company- if Disney and Viacom18 come together, their competitive position will weaken. So even from their standpoint, it is in their interest to come together,” Jinesh Joshi of Prabhudas Lilladher said.
