We are committed to the merger with Sony: Zee Entertainment Limited clarifies amidst reports of rift

Zee Entertainment Limited has refuted reports that they are reconsidering their merger deal with Sony Pictures Network India. “This is with reference to (i) the letter dated January 9, 2024 bearing reference number NSE/CM/Surveillance/13787 received from National Stock Exchange of India Limited; and (ii) an email dated January 9, 2024 bearing reference number L/SURV/ONL/RV/KS/ (2023- 2024)/ 78 received from BSE Limited, regarding the news item captioned “Sony on the brink of terminating $10 billion merger with Zee: The inside story of what went wrong over two years” In this regard, we would like to clarify that the above-mentioned article is baseless and factually incorrect. We wish to reiterate that the Company is committed to the merger with Sony and is continuing to work towards a successful closure of the proposed merger. We would also like to state that the Company has always complied with its obligations under the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and will continue to make disclosures in accordance with the same,” the company mentioned in a regulatory filing. 

This 10 billion dollar merger which includes a breakup fee of 100 million dollars would result in the combined unit consisting of 70 channels, 2 video streaming services and two film studios. SEBI prohibiting ZEE promoters Punith Goenka and Subash Chandra from being part of boardrooms of 4 ZEE group companies led to speculations of rift within the merger. Shares of Zee Entertainment dropped by 10 percent after the reports of the rift.