Sony Group Corp has called off its $10 billion merger plan with Zee Entertainment Enterprises Limited (ZEEL) and Sony has officially informed Zee Entertainment Enterprises Limited (ZEEL) about the same. This ends a two-year acquisition saga. ZEEL announced its intention to take legal action against Sony Pictures Networks India (SPNI) on January 22, 2024.

Here’s a timeline over 2 years

September 21, 2021: Zee’s board of directors unanimously approved the proposal to merge with Sony Pictures Networks India.

December 21, 2021: The board approved the merger proposal with the goal of creating a media powerhouse.

February 2022: IndusInd Bank files for bankruptcy proceedings against Zee Entertainment.

July 29, 2022: Stock exchanges NSE and BSE approved the Zee-Sony merger.

October 4, 2022: The Competition Commission of India (CCI) approved the merger with voluntary structural measures.

December 2022: IDBI Bank has moved the National Company Law Tribunal (NCLT) against Zee and sought insolvency proceedings to recover Rs 149.60 crore in dues.

Following reports of Sony canceling the Zee merger plan, Zee Entertainment Enterprises Limited (ZEEL) announced its intention to take legal action against Sony Pictures Networks India (SPNI) on January 22, 2024.

In a regulatory filing, Zee said, “The company is evaluating all available options and will take all necessary steps to protect the long-term interests of its stakeholders based on the guidance received from the Board, including taking appropriate legal action and countering Culver.” “Involves doing.” “Claims of Max and BEPL in the arbitration proceedings.”

According to reports, the bone of contention between the two parties is the leadership of the merged entity. While Zee wants to bring in Punit Goenka into the company, Sony is not sure about going ahead with Goenka’s candidature due to the ongoing investigation by the Securities and Exchange Board of India (SEBI) against him. Notably, Sony Pictures Networks India Pvt – if the merger happens – will hold 50.86 per cent stake in the new entity, while the Zee founders will hold 3.99 per cent. As per the terms of the merger deal mentioned earlier, the remaining shares will be owned by public shareholders.