Sony Pictures terminates potential merger with Zee Entertainment

Sony Pictures Networks India (SNPI) has terminated its potential merger with the Zee Entertainment Enterprises Limited (ZEEL) after the attempt to reevaluate the terms of agreement did not bear fruit. “The Merger did not close by the End Date as, among other things, the closing conditions to the Merger were not satisfied by then. SPNI has been engaged in discussions in good faith to extend the End Date but the Discussion Period has expired without an agreement upon an extension of the End Date,” a statement released on SNPI’s website mentioned. 

SNPI issued a notice to ZEEL. “Although we engaged in good faith discussions to extend the end date under the merger cooperation agreement, we were unable to agree upon an extension by the January 21 deadline. After more than two years of negotiations, we are extremely disappointed that closing conditions to the merger were not satisfied by the end date.We remain committed to growing our presence in this vibrant and fast-growing market and delivering world-class entertainment to Indian audiences,” the notice read.

It is being reported that the major point of disagreement was regarding the appointment of Punit Goenka as the Chief Executive Officer (CEO) and Managing Director (MD) of the merged entity due to an investigation into money laundering charges being undertaken by the Securities and Exchange Board of India (SEBI) against him.