Zee Entertainment requests deadline extension for $10 Billion merger with Culver Max Entertainment amid uncertainties

Zee Entertainment Enterprises has reportedly sought an extension from Culver Max Entertainment to complete the $10 billion merger deal, the deadline for which is set to expire on January 20.

In an exchange filing, Zee stated that it was not aware of any board meeting held or proposed by Culver Max Entertainment Private Limited (formerly Sony Pictures Networks India Private Limited, “Sony”), as these are considered internal matters of Sony. Reports suggest that Culver has called for a meeting to make a final decision on the deal. According to an ET report, Sony’s India arm has not responded to the extension request, indicating potential uncertainty around the deal’s continuation.

Zee and Sony initially had until December 21, 2023, to finalize the deal. However, on December 20, Zee informed the exchanges that Sony had agreed to extend the deadline in good faith. Zee reiterated its commitment to the merger in the filing, expressing ongoing efforts to successfully close the proposed merger through constructive negotiations with Sony to discuss an extension of the effective date.

The statement also highlighted Zee’s compliance with the Securities and Exchange Board of India (SEBI) regulations and its commitment to making disclosures in accordance with those regulations. Meanwhile, Sony has not yet commented on Zee’s statement. Notably, Sony has expressed opposition to Punit Goenka’s appointment as the MD and CEO of the merged entity, citing ongoing SEBI investigations. Goenka reportedly offered to relinquish the role.

SEBI had accused Zee last year of engaging in deceptive practices by falsely claiming the recovery of loans to conceal private financing deals associated with Zee Chairman Subhash Chandra. The merger’s fate remains uncertain pending resolution of these issues.