Zee CEO Punit Goenka Says Sony Calling Off Merger 'A Sign From Lord Ram'

Punit Goenka, managing director and chief executive officer of Zee Entertainment Enterprises Ltd., called the termination of the merger with Sony 'a sign from lord Ram'.

"As I arrived at Ayodhya early this morning for the auspicious occasion of Pran Pratishtha, I received a message that the deal that I have spent 2 years envisioning and working towards had fallen through, despite my best and most honest efforts," Goenka said in a post on X (formerly Twitter) while attended the consecration ceremony. "I believe this to be a sign from the Lord. I resolve to move ahead positively and work towards strengthening Bharat’s pioneering M&E Company, for all its stakeholders."

His message came after Sony Pictures Networks India Pvt., now called Culver Max Entertainment Ltd., confirmed that its India unit has terminated its agreement to merge with Zee

Sony said as the merger did not close by the end date as, among other things, the closing conditions were not satisfied.

The key contention has been if Goenka would lead the combined entity. SEBI had barred him from holding a key managerial position over alleged fund diversion. While he won relief from the Securities Appellate Tribunal, the regulatory scrutiny continues.

Zee in its official response said the Sony Group has invoked arbitration and sought a termination fee of $90 million on account of alleged breaches of the deal. Zee "categorically denies" it and is evaluating all available options, it said.

"ZEEL will take all the necessary steps to protect the long-term interests of all its stakeholders, including by taking appropriate legal action and contesting Culver Max and BEPL’s claims in the arbitration proceedings," it said in an exchange filing on Monday.