Sony terminates $10-billion Zee merger: Reports

The mega $10-billion merger between Zee Entertainment Enterprises and Sony Pictures Networks India has officially crumbled, according to a Bloomberg report. This comes a day after the extended deadline for finalizing the deal expired.

Sony reportedly sent a termination notice to Zee, officially pulling out of the merger agreement. This follows Zee's request on Friday for a second extension to finalize the complex deal, initially set for completion by December 2023. Sony had previously accommodated a first extension.

Bloomberg's report cites unmet conditions as the reason for Sony's decision. While neither company has formally commented, official statements are expected on stock exchanges later today.

The ambitious media merger, first announced over two years ago, faced a major hurdle in the form of leadership concerns. Doubts surrounding the future leadership of the merged entity arose due to an ongoing market regulator investigation into Zee CEO Punit Goenka.

This news marks a significant development in the Indian media landscape. The proposed merger, if successful, would have created the country's largest media powerhouse, combining Zee's strong presence in television and Sony's expertise in film and digital platforms. However, the lingering leadership issues and unmet conditions ultimately proved insurmountable, leading to the deal's demise.

With Sony officially out of the picture, the future of Zee Entertainment remains uncertain. The company will likely need to re-evaluate its strategic options and seek alternative partnerships or growth strategies in the evolving media landscape.