Sony-Zee Merger put on hold, due to these allegations Japanese company broke the deal
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There was going to be a big deal between Sony Group and Zee Entertainment, which has been cancelled. Now no merger will be done between Zee and Sony. Zee Entertainment has suffered a big blow due to the cancellation of this deal. This was going to be a deal worth 10 billion dollars, which has now been cancelled. After the collapse of this merger, a 30 percent decline was seen in the shares of Zee Company.
After canceling the deal, Japanese company Sony has also shared the reasons behind not doing the deal. The company has disclosed its reasons due to which the decision to make the deal had to be changed. According to Sony Group, Zee Entertainment did not follow the financial terms decided between the two companies.
Initially, based on media reports, it was speculated that the main reason for the collapse of this merger was Zee Entertainment CEO Punit Goenka. Sony was not happy with his leadership, but now it is being said that this is not so.
Let us tell you that along with the cancellation of the merger, Sony Group has also sent a notice to Zee Entertainment. It has been said in this notice that this deal could not be completed within the stipulated time. To complete this deal, several financial limits had to be met which have not been met. Sony has sent a 62-page notice, which also alleges violations of several terms related to the merger agreements. It is not possible to repair these changes. Sony Group said that there is no scope for improvement in this.
Ji has issued a statement saying that no condition has been violated on his part. This termination has been done with wrong intentions on the part of Sony. There is also a legal reason behind this. Let us tell you that after the cancellation of the deal, Zee Entertainment has also filed a petition before the National Company Law Tribunal (NCLT).
Honorary President of JI Subhash Chandra has also expressed his displeasure on this matter. While talking to the media, he said that the company is also considering filing a criminal case against Sony. Questions have also been raised on Sony’s intentions. Let us tell you that Subhash Chandra said about the company’s CEO Punit Goenka that he was ready to leave his post as per Sony’s demand, but still Sony backed out of this deal at the last moment.
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