New Delhi: Its deadline is approaching, high-profile media merger Sony’s local unit in India and Zee Entertainment have been in a standoff between the Japanese gaming and media giant and the Goenka founding family of Zee.
Initially agreed to take Punit goenka Leading the merged entity, Soni is now reportedly pushing for his appointment. However, a Bloomberg report said that Goenka stood by his word and neither side has officially commented on the ongoing conflict.
According to reports, Sony is pitching for NP Singh, managing director of its Indian operations, to lead the merged company. The push comes in the light of the ongoing investigation involving Zee’s candidate, managing director Punit Goenka.
This change in Sony’s stance comes in the wake of regulatory challenges being faced by Punit Goenka, son of Zee Group founder Subhash Chandra. Despite being CEO since 2010, a June 2023 SEBI order put his position in jeopardy. Although they won relief at the appellate tribunal, the markets regulator’s ongoing investigation into alleged fund misappropriation by the father and son remains unresolved, with both denying any wrongdoing.
The potential power struggle is significant as it determines who will cave in first, potentially losing the opportunity to create India’s largest media company. According to Motilal Oswal report, the merged entity will boast more than 75 television channels and a market share of 37%, surpassing Disney-owned Star’s 24%.
Notably, the Goenka family, with a mere 3.99% shareholding, runs Zee Entertainment. With many institutional investors holding more significant stakes, public shareholders will have the final say if the deal requires fresh approval.
In a separate development, Bloomberg reported last month that industry rival Disney is close to a deal to sell its India operations to Reliance Industries.
Billionaire Mukesh Ambani, who faced rejection in his merger proposal with Goenka in 2021, may be eyeing a collaboration with Disney, which is losing customers in India. If the Zee-Sony deal fails, expect new alliances and intrigue in this three-year saga, Bloomberg reports.
(with inputs from agencies)
Initially agreed to take Punit goenka Leading the merged entity, Soni is now reportedly pushing for his appointment. However, a Bloomberg report said that Goenka stood by his word and neither side has officially commented on the ongoing conflict.
According to reports, Sony is pitching for NP Singh, managing director of its Indian operations, to lead the merged company. The push comes in the light of the ongoing investigation involving Zee’s candidate, managing director Punit Goenka.
This change in Sony’s stance comes in the wake of regulatory challenges being faced by Punit Goenka, son of Zee Group founder Subhash Chandra. Despite being CEO since 2010, a June 2023 SEBI order put his position in jeopardy. Although they won relief at the appellate tribunal, the markets regulator’s ongoing investigation into alleged fund misappropriation by the father and son remains unresolved, with both denying any wrongdoing.
The potential power struggle is significant as it determines who will cave in first, potentially losing the opportunity to create India’s largest media company. According to Motilal Oswal report, the merged entity will boast more than 75 television channels and a market share of 37%, surpassing Disney-owned Star’s 24%.
Notably, the Goenka family, with a mere 3.99% shareholding, runs Zee Entertainment. With many institutional investors holding more significant stakes, public shareholders will have the final say if the deal requires fresh approval.
In a separate development, Bloomberg reported last month that industry rival Disney is close to a deal to sell its India operations to Reliance Industries.
Billionaire Mukesh Ambani, who faced rejection in his merger proposal with Goenka in 2021, may be eyeing a collaboration with Disney, which is losing customers in India. If the Zee-Sony deal fails, expect new alliances and intrigue in this three-year saga, Bloomberg reports.
(with inputs from agencies)
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