Indian company Zee Entertainment wants to revive its $10 billion merger with Sony

Indian company Zee Entertainment wants to revive its $10 billion merger with Sony

The logos of Zee Entertainment and SONY can be seen in this image from September 1, 2022. REUTERS/Dado Ruvic/Illustration/Archive photo

BENGALURU – India's Zee Entertainment is making a final attempt to restart talks with Japan's Sony Group to revive their $10 billion merger deal that collapsed on January 22, India's Economic Times reported on Tuesday, citing people familiar with the matter.

Representatives from both parties have been working to salvage the deal, with efforts to revive the merger gaining momentum in the past two weeks, the report said.

However, there is a possibility that the discussions will fail as significant differences remain unresolved and both sides remain firmly committed to their positions, it said.

Zee denied in a stock exchange filing that it was involved in such negotiations. Sony did not immediately respond to Reuters' request for comment.

READ: Sony is parting ways with Zee from India

Sony terminated its merger with Zee due to certain unresolved “closing conditions” and governance disputes, including disagreements over CEO Punit Goenka's involvement in regulatory matters.

Rescue deal

Zee is expected to inform Sony within the next 24 to 48 hours of its willingness to accept all terms and conditions and proceed with the merger, the newspaper said.

If this is not the case, Sony is expected to withdraw its original merger application from the National Company Law Tribunal (NCLT) by the end of this week, as agreed in the original merger proposal agreement.

READ: Sony and Zee are offering concessions to ease Indian regulators' concerns over the merger, sources said

The Zee-Sony merger, which has been in the works for two years, would have created an Indian television giant with more than 90 channels across sports, entertainment and news, competing with the likes of Walt Disney and billionaire Mukesh Ambani's Reliance Industries .

Zee shares closed around 8 percent higher on Tuesday.