Sony Looking To Get Out Of Zee Indian Unit Merger: Report

Sony Group Corp SONY is reportedly planning to call off the merger deal of its India unit with Zee Entertainment Enterprises Ltd.

Sony wants to cancel the deal (signed in 2021) due to a standoff over whether Zee's Chief Executive Officer Punit Goenka would lead the merged entity, reported Bloomberg. 

As per the report, although, as per the initial merger agreement, Goenka was supposed to lead the new company, Sony no longer wants him as CEO amid Zee's ongoing regulatory investigation.

Sony has decided to file the termination notice before January 20, which is the extended deadline for closing the deal, as some of the conditions necessary for the merger had not been met, the report added.

On the other hand, Goenka is stressing towards leading the merged company, as agreed initially.

Both companies are still discussing the matter and a resolution can still emerge before the deadline, as per the report.

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Price Action: SONY shares are trading higher by 0.25% at $91.45 on the last check Monday.