Punit Goenka has said that Zee is in “active engagement” with Sony Pictures Networks India (SPNI) on the proposed merger scheme. “We are committed that all points in the proposed merger scheme are fully addressed. We recognise the value the merger holds and our focus is on unlocking opportunity for all the shareholders,” said Goenka during the earnings call.
This comes at a time when Sony is considering to appoint NP Singh to the future post of MD and CEO of the merged company, going against the original terms of the merger agreement that committed the top role to Goenka.
The merger of Zee and Culver Max was approved by the National Company Law Tribunal (NCLT) in August, but hit a roadblock when Goenka, who was spearheading the plan, had to step down as CEO.
SEBI had barred Goenka from the boards of Zee Group, after it found in its investigations that Goenka and Chandra had allegedly siphoned off funds from ZEEL to show false recovery of loans. Troubles for Goenka only worsened when SEBI doubled down, stating that Goenka was banned from Zee Group companies for at least eight months while it completes its investigations. Since then, SAT has removed SEBI’s ban, and Goenka, reinstated at the helm of ZEEL, is again gunning for the top job in the merged company.
During the earnings call, the company’s management also said it was focussing on implementation of the merger scheme. “There are some conditions that we need to complete, so we will take a few more weeks to complete it,” said the management.
With a likely Reliance-Disney media behemoth looming in the horizon, Sony and Zee need this merger for survival. Reliance’s acquisition of Disney’s India properties will be an even bigger consolidation than a Zee-Sony merger, and in this case, the consolidation of the media market into a duopoly is the only natural course.
The merger scheme, signed on December 21, 2021, said Goenka would continue as MD and CEO of the merged entity for five years.