Indian media conglomerate Zee Entertainment Enterprises reportedly reaffirmed its commitment to a merger with Sony Group Corp's SONY local arm in India, countering recent media speculations suggesting that the $10 billion deal might be on the verge of collapse.
Zee emphasized that reports about the deal falling apart are "baseless and factually incorrect," and it remains dedicated to finalizing the merger, reported Reuters.
Media reports on Monday indicated that Sony was considering terminating the merger. The speculation arose over disagreements regarding Zee CEO Punit Goenka's leadership role in the merged entity amid an ongoing regulatory probe.
The merger is considered vital for both Zee and Sony, especially in light of the impending consolidation of local heavyweight Reliance Industries with Walt Disney Co's DIS Indian media and entertainment operations.
Zee Entertainment has been grappling with financial difficulties, including a decrease in advertisement revenue and a significant drop in cash reserves.
Zee Entertainment has missed a deadline to pay $200 million to Disney's India unit for TV rights of cricket matches, Bloomberg reported, citing people familiar with the matter.
Price Action: SONY shares closed higher by 1.29% at $92.40 on Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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