Zee Entertainment plunges 9% on reports of merger termination; Stock Market LIVE Updates

Shares of the media company are down more than 8%.

This comes after the reports claimed that Japan-based Sony Group is planning to call off its Indian units merger with Zee Entertainment.

The $10 billion deal could be reportedly called off over a standoff on whether Zee CEO Punit Goenka should lead the merged entity. Both the entities had reached an agreement in 2021 to create India’s largest broadcast company.

The agreement reportedly stated that Punit Goenka would lead the merger entity. But, amid charges of siphoning the money, Sony doesn’t want him to lead the merged entity, claim reports. In June 2023, India’s market regulator Securities and Exchange Board of India (SEBI) had barred Punit Goneka and his father Subhash Chandra from holding any key positions in listed companies.

Sony is reportedly planning to send a deal termination notice to Zee Entertainment this month. In December 2023, both the companies were given a grace period of 1 month to close the deal.