Sony Group Corp. is considering scrapping the merger agreement involving its India unit and Zee Entertainment Enterprises, according to a Bloomberg report.
The potential dissolution arises from a disagreement concerning the leadership of the envisioned $10 billion entity.
Sony intends to submit the termination notice before the extended deadline of January 20 for completing the deal, sources told Bloomberg.
One source mentioned that this action is prompted by the assertion that certain conditions essential for the merger have not been fulfilled.
Zee asserts that Punit Goenka, its Chief Executive Officer (CEO) and the son of the company's founder, will lead the new entity as stipulated in the 2021 agreement. However, Sony is cautious about this appointment due to an ongoing regulatory investigation against Goenka. This disagreement has sparked a last-minute conflict in the two-year-old merger plan.
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