The two-year long saga of the Zee and Sony merger continues with another twist in the tale. After the dramatic events of January 2024, which saw the collapse of the merger, reports now indicate that Zee and Sony are attempting to iron out differences to salvage the $10 billion media merger.
According to an ET report, Zee Entertainment Enterprises (ZEEL) has re-engaged with Sony Group Corp in a last-ditch attempt to revive their merger, which was officially called off on January 22, the day of the Ram Mandir inauguration in Ayodhya.
CEO Punit Goenka had earlier in the ZEE’s recent analyst call had said: “I certainly wanted the merger to be implemented. In line with this aspiration, we even took several steps towards divestment or closure of profitable businesses in the domestic and international markets. I personally offered several proposals and solutions to Sony, to address their demands, but unfortunately, they remained unaccepted. Since the matter is sub-judice, I would not like to say more and let the law take its own course.”
A little less than a month ago, Quantum Securities’ Sanjay Dutt sparked speculation with a cryptic post suggesting a done deal for ‘AMG’. Some decoded the ‘done deal’ as an arrangement in discussion between Adani and the Goenka on ZEEL. Insiders claim discussions are more concrete than gossip.
It seems there’s more to these insiders’ claims. “Zee had its eyes set on a different suitor long before the marriage with Sony was called off,” an insider had told Storyboard18. The innumerable roadblocks in the Zee-Sony merger allegedly prompted Zee to explore alternative partnerships long before Sony sent Zee the termination notice on January 22, bringing to an end two-years of talks and negotiations
A development that Zee MD Punit Goenka said was ‘a sign from the Lord’, as he wrote on X, formerly Twitter, from the Ram Mandir inauguration ceremony in Ayodhya. Goenka was on the state guest list that included the who’s who of India Inc.
Recent reports also suggest that Sony remains optimistic about its long-term prospects in India. According to Nikkei Asia reports, the company is aggressively considering alternative opportunities for its India business. “In the long term, India remains a promising market,” Nikkei Asia quoted Hiroki Totoki, President, COO, and CFO of Sony. Totoki assured that the setback with Zee will not hinder the company’s investment strategy.