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Thursday, July 18, 2024

The deadline for the Zee-Sony merger agreement may be extended by one month

<p>An important change is that Zee Entertainment Enterprises and Sony Group of Japan may have one more month to complete their $10 billion acquisition of India operations, instead of the December 21 deadline. This merger deal was first signed in 2021, and according to sources from many media outlets, it included a 30-day grace period for future renewals. In order to allay concerns about the merger and the merged entity’s leadership structure, the grace period was extended. The news followed Sony India’s announcement earlier on December 19 that Zee had asked to delay the merger’s effective date. Sony said that it has not yet consented to a one-month deadline extension. According to a statement from Sony India, “Zee’s proposal should be considered before deciding on an extension.”</p>
<p><img decoding=”async” class=”alignnone wp-image-319173″ src=”https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-the-deadline-for-the-zee-sony-merger-agreement-may-be-extended-by-one-month-131526.jpg” alt=”theindiaprint.com the deadline for the zee sony merger agreement may be extended by one month 131526″ width=”1081″ height=”641″ title=”The deadline for the Zee-Sony merger agreement may be extended by one month 9″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-the-deadline-for-the-zee-sony-merger-agreement-may-be-extended-by-one-month-131526.jpg 612w, https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-the-deadline-for-the-zee-sony-merger-agreement-may-be-extended-by-one-month-131526-150×89.jpg 150w” sizes=”(max-width: 1081px) 100vw, 1081px” /></p>
<p>For the uninformed, the agreement was announced two years ago by both of the major satellite providers, Sony and Zee. As per the agreement, they had to combine their film assets, TV stations, and streaming services. It was postponed, however, since in August of last year the markets regulator disallowed Zee CEO Punit Goenka from serving as a director of any listed business. A few months later, the Securities Appellate Tribunal (SAT) removed Goenka’s prohibition, enabling him to go on with his involvement in the merger with the Indian division of Sony Group.</p>
<p>The leadership of the combined company is reportedly the point of conflict between the two parties. Zee wants Punit Goenka to join the company, but because of an ongoing investigation by the Securities and Exchange Board of India (SEBI) into Goenka, Sony is hesitant to proceed with his bid. Notably, in the event of a merger, the founders of Zee would control 3.99% of the new company, while Sony Pictures Networks India Pvt will possess 50.86%. Public shareholders will hold the remaining shares in accordance with the previously announced provisions of the merger agreement.</p>

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