Sign from the Lord: Punit Goenka tweets from Ayodhya as Zee-Sony merger terminates

After the Culver Max Entertainment (CME) merger with Zee Entertainment Enterprises (ZEEL) was called off, Punit Goenka, the MD and CEO of ZEEL, who was in Ayodhya for the consecration of the Ram Mandir on Monday, expressed his belief that this development is a meaningful sign from the Lord.

Earlier today, CME, erstwhile Sony Pictures Networks India, confirmed that it issued notice to ZEEL terminating the agreement dated December 22, 2021, to merge ZEEL and CME.

Taking to X, Goenka wrote, “As I arrived at Ayodhya early this morning for the auspicious occasion of Pran Pratishtha, I received a message that the deal that I have spent two years envisioning and working towards had fallen through, despite my best and most honest efforts.”

“I believe this to be a sign from the Lord. I resolve to move ahead positively and work towards strengthening Bharat’s pioneering M&E company, for all its stakeholders. Jai Shri Ram,” he added.

Meanwhile, asserting that Goenka had agreed to step down in the interest of the merger with Sony, ZEEL said that it would take all the necessary steps to protect the long-term interests of all its stakeholders, including by taking appropriate legal action and contesting Culver Max and BEPL’s claims in the arbitration proceedings.

Reportedly, the condition in the term sheet to appoint Goenka as the CEO of the merged entity had been a major problem for Sony and it was actively in search of its representative to lead the combined entity.

Following this, ZEEL in a statement said that in its board meeting held today, ZEEL took on record communications received from Culver Max Entertainment and Bangla Entertainment (BEPL) on January 22, 2024, purporting to terminate the Merger Co-operation Agreement dated December 21, 2021, (MCA), and seeking a termination fee of $ 90,000,000 on account of alleged breaches by ZEEL of the terms of MCA, invoking arbitration and seeking interim reliefs against ZEEL.

“ZEEL categorically denies all the assertions raised by Culver Max and BEPL on the alleged breaches under the terms of the MCA, including their claims for the termination fee,” the company said.

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