Zee denies reports of Sony merger cancellation

Zee Entertainment Enterprises has issued a denial of reports claiming Sony planned to abandon their $10-billion mega-merger. The denial, filed with regulatory authorities, reaffirmed Zee's commitment to the deal and ongoing efforts to secure its successful completion. 

This clarification came in response to a Bloomberg report suggesting Sony's dissatisfaction with Zee MD and CEO Punit Goenka potentially leading the merged entity, fueling speculation of a Sony withdrawal. Branding the report "factually incorrect," Zee emphasized its adherence to SEBI regulations and vowed continued compliance.

However, the news sent shockwaves through the market, initially wiping 10% off Zee's share price. Fortunately, the stock recovered slightly to trade 6% lower by mid-afternoon.

The Zee-Sony saga has been a rollercoaster ride, grappling with regulatory hurdles and internal controversies. Despite approvals from authorities like CCI, NSE, BSE, shareholders, and creditors, finalizing the agreement remains elusive. The main sticking point revolves around Punit Goenka's leadership. SEBI's restriction on his managerial roles due to a fund-diversion case raises concerns for Sony.
Reports indicate Sony contemplated legal action before the January 20 deadline, citing unfulfilled conditions. However, negotiations continue, and a resolution before the deadline is not ruled out. This proposed merger, aimed at creating India's entertainment behemoth with over 70 channels, digital assets, and production facilities, hangs in the balance amidst persistent whispers of potential collapse.