ZEE refutes merger talk revival with Sony

Refuting media reports, Zee Entertainment Enterprises Ltd (ZEEL) has clarified to the stock exchanges that it is not involved in any negotiations, or any other event to revive the $10-billion merger deal with Sony.

“We would like to clarify that the Company has not been involved in any negotiations, or any other event as stated in the above-mentioned article, and we categorically confirm that the above-mentioned news item is factually incorrect,” ZEEL clarified after the BSE sought clarification from the company regarding a recent news item which appeared on Moneycontrol’s website, titled ‘Zee stock gains 4% on reports of attempt to revive $10-billion Sony deal’.

There were some media reports recently that stated that ZEEL was making a final, desperate attempt to salvage its $10-billion merger deal with Sony. The reports quoted sources revealing about the ongoing discussions between representatives, with renewed momentum in the last two weeks. However, hurdles remain, with both sides sticking to their guns on unresolved issues.

As reported earlier, the mega merger deal was scrapped in January 2024 due to unresolved issues. The original termination stemmed from disagreements between the two parties over closing conditions and leadership disputes, particularly CEO Punit Goenka’s role in regulatory matters.

Now, ZEEL faces a ticking clock, expected to provide an answer to Sony within 48 hours on accepting all terms and proceeding.

Sony, on the other hand, holds the option to withdraw its merger application with the National Company Law Tribunal by the end of this week, as per the original agreement.