Why Sony-Zee merger may not happen anytime soon
What's the story
Sony Pictures Networks India (SPNI) announced on Tuesday that it has not yet agreed to extend the merger deadline with Zee Entertainment Enterprises.
The merger, set to create a $10 billion media and entertainment giant, has a deadline of December 21.
"SPNI is required to start those conversations but has not yet agreed to a deadline extension," the company stated.
Shares of Zee Entertainment were down 4.7% on NSE.
Details
Zee requests extension after independent directors fail reappointment
On Sunday, Zee Entertainment Enterprises asked for more time to complete the merger with Culver Max Entertainment Private Limited (previously Sony Pictures Networks India Private Limited).
This request followed the failure of two independent directors, Sasha Mirchandani and Vivek Mehra, to secure their reappointment to Zee's board.
A Reuters report suggests that the reappointment of these directors could have impacted the selection of the new merged entity's leader.
What Next?
Combined entity to become India's largest entertainment network
The combined Zee-Sony company would possess over 70 TV channels, two video streaming platforms (ZEE5 and Sony LIV), and two film studios (Zee Studios and Sony Pictures Films India).
In 2021, Zee declared that the merged entity would become India's largest entertainment network.
However, before the merger deadline, Zee and Sony were in a standoff over who would lead the new entity - Zee CEO Punit Goenka or Sony's MD for its India operations, NP Singh.