Zee-Sony merger faces challenges - unlikely to proceed as anticipated

The Zee-Sony merger is reportedly facing challenges, and it is unlikely to proceed as initially anticipated. In December, it was disclosed that Zee Entertainment Enterprises Limited (ZEEL) and Sony had a one-month window to finalize the merger. As per a Bloomberg report, Sony is expected to issue a termination notice before January 20.

On 20th December, 2023 ZEEL informed the Bombay Stock Exchange (BSE) that Sony had agreed to engage in discussions about extending the merger deadline.

Last month, ZEEL stated that Culver Max Entertainment, formerly known as Sony Pictures Networks India, had shown a willingness to discuss extending the deadline required to make their merger scheme effective, just a day before the deadline.

ZEEL sought an extension from Culver Max Entertainment and Bangla Entertainment Pvt Ltd (BEPL) to complete the proposed merger, which aims to create India's largest media conglomerate, according to regulatory updates.

Culver Max Entertainment is an indirect wholly-owned subsidiary of Sony Group Corporation (SGC), while BEPL is also an indirect wholly-owned subsidiary of SGC and part of the SGC Group.

Although the proposed $10-billion merger of ZEEL, BEPL, and CMEPL has received regulatory approvals from the Competition Commission of India (CCI), stock exchanges NSE and BSE, as well as shareholders and creditors of the company, the completion of the $10-billion deal by the end of 2023 faced various challenges, preventing the two entities from finalizing the merger.