Zee Entertainment Enterprises Ltd. has clarified that recent media reports suggesting its merger deal with Sony Pictures Networks India is in jeopardy are “baseless and factually incorrect.”
In an exchange filing on January 9th, Zee Entertainment reiterated its commitment to closing the proposed $10 billion merger, denying earlier reports that Sony was looking to abandon the deal due to conflicts over leadership of the combined entity.
“The company is committed to the merger with Sony and is continuing to work towards a successful closure,” the statement read.
The clarification comes after Zee’s stock plunged 10% yesterday following a Bloomberg report indicating Sony had doubts about allowing current Zee CEO Punit Goenka to head up the new company.
Zee and Sony had announced the merger in late 2021, pending regulatory approvals. However, an ongoing probe into Zee by Indian authorities has reportedly raised concerns for Sony about leadership continuity if the deal goes through.
Despite the stock drop and speculation, Zee Entertainment has asserted it expects the massive media merger to close as previously outlined. The deal would combine Sony’s India TV assets with Zee’s extensive broadcast network under Goenka’s leadership.