Zee Entertainment Enterprises MD and CEO, Punit Goenka had reportedly offered to step down from the chief executive role in the Zee-Sony merged entity, ET NOW reported quoting insiders.
This could have potentially resolved the ongoing tussle between the two media firms, currently operating under an extended deadline of January 20, to finalise the merger. The negotiations are primarily centered around disagreements regarding leadership issues.
Storyboard18 had earlier reported, Sony rejected the proposal, advocating for their executive NP Singh to assume the leadership role in the merged entity due to stringent corporate governance norms in Japan and the US.
Read More: Zee-Sony Merger deadlock: Sony turns down Punit Goenka’s proposal on leadership issue
But per the initial agreement, Goenka was slated to assume the role of MD and CEO in the merged venture. SPNI (Sony Pictures Networks India) was intended to hold 50.86 percent of the company, Zee’s promoters would have 3.99 percent, and the remaining 45.15 percent was to be allocated to public shareholders. Neither Zee nor Sony wanted to move from their leadership candidature.
Sony Group Corp. was reportedly also considering abandoning the $10 billion merger deal with Zee Entertainment Enterprises Ltd. over disagreements on Zee CEO Punit Goenka leading the merged entity.
Amidst speculations of the deal falling apart, in a regulatory filing on January 9, Zee Entertainment Enterprises Limited claimed that the merger was on track.