“Sign From The Lord”: Zee CEO Punit Goenka On Sony Deal Collapse
In a surprising turn of events, Sony Group, the Japanese entertainment giant, has reportedly sent a termination letter to Zee Entertainment, signaling the end of the much-anticipated $10 billion merger deal between its India unit and the media network. Bloomberg, citing insider sources, disclosed on Monday that Sony cited unmet conditions of the merger agreement as the primary reason for calling off the deal.
Punit Goenka, CEO of Zee, who was in Ayodhya for the Ram Temple inauguration ceremony, reacted to the news, by calling it a “sign from the Lord”. He also said he is resolved to move ahead and work towards strengthening the company.
He said, “As I arrived at Ayodhya early this morning for the auspicious occasion of Pran Pratishtha, I received a message that the deal that I have spent 2 years envisioning and working towards had fallen through, despite my best and most honest efforts.”
Goenka continued, “I believe this to be a sign from the Lord. I resolve to move ahead positively and work towards strengthening Bharat’s pioneering M&E Company, for all its stakeholders.”
This development brings an end to a two-year acquisition saga, although both companies have yet to make official statements on the matter. According to Bloomberg”s sources, Sony is expected to officially disclose the termination to the exchange in the coming days.
The termination news follows an earlier report on January 8, where Bloomberg revealed Sony”s intentions to abandon the merger with Zee. The report suggested that a key point of contention was a standoff over whether Zee”s Chief Executive Officer, Punit Goenka, would lead the merged entity. Notably, Punit Goenka is currently under investigation by SEBI, the capital markets regulator.
