Zee-Sony Merger Talks Stall Over Leadership Dispute

The merger talks between India”s Zee Entertainment Enterprises and Sony”s Indian subsidiary have temporarily stalled over a disagreement on who will lead the merged entity, according to a report in the Mint business daily.

The disagreement arose when Sony proposed its Indian Managing Director, N.P. Singh, as the candidate to head the merged entity. This move came as Zee”s Managing Director, Punit Goenka, who was being touted as the head of the merged entity, faced an investigation by the Securities and Exchange Board of India (SEBI).

Last month, the National Company Law Tribunal of India acquitted Goenka of charges of illegal fund allocations and allowed him to repossess the key positions he held before SEBI”s ban came into force. The NCLT rejected SEBI”s allegations against him.

SEBI had accused Goenka and Zee Group Chairman Subhash Chandra of diverting company funds to their personal companies. Both of them denied any wrongdoing. According to the report, SEBI is planning to file an appeal in the Supreme Court in the wake of the NCLT order.

This is not the first time that Sony-Zee merger talks have been disrupted. The Zee-Sony merger was originally announced in December 2020, but disagreements over who would run the merged entity prevailed.

If the two companies fail to reach consensus this time, the merger plans may be derailed, according to the report.