Zee Sony Merger: ZEEL and Sony get one month extension to close $10 billion merger
The one-month grace period starts December 21, the initial deadline for the merger.
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Sony Group Corp. and Zee Entertainment Enterprises Ltd (ZEEL) have until the end of January 2024 to close the merger, as per reports. The one-month grace period starts December 21, the initial deadline for the merger of the media companies' operations that aims to create a $10 billion media behemoth.
A day before the original merger deadline of December 21, Zee informed in a regulatory filing that Sony has agreed to discuss an extension of the date.
“The Company is now in receipt of a communication from CMEPL (Culver Max Entertainment Private Limited and BEPL (Bangla Entertainment Private Limited )that they will enter into good faith negotiations as required under the Merger Cooperation Agreement (MCA) entered amongst the Parties, the Company, CMEPL and BEPL, with a view to discuss the extension of the date required to make the Scheme effective by a reasonable period of time,” the regulatory filing said.
ZEEL had written to Culver Max Entertainment Private Limited formerly known as Sony Pictures Networks India Private Limited) seeking an extension on December 17.
The ongoing saga of the mega merger also revolves around the leadership issue of the merged entity. Internal sources suggest Sony has deep reservations around the proposal to have Punit Goenka, CEO and MD of Zee Entertainment Enterprises Ltd (ZEEL), lead the new entity.
In a separate conversation with Storyboard18, Rajiv Sharma, corporate law (litigation) expert and partner at Singhania & Co, said, “The appointment of Goenka as MD and CEO in the merged company does not bode well on the goodwill of Sony, as the flag on the ship is as important as the ship itself.” Sony Group wants NP Singh, its India MD and CEO, to take over as the CEO of the newly formed Zee-Sony entity. According to the Japanese company, this change aligns with stringent corporate governance norms in Japan and the US.
