Sony plans to call off $10 billion merger with India’s Zee

Sony Group is planning to call off a merger between its India unit and Zee Entertainment Enterprises, people familiar with the matter said, capping two years of drama and delay in creating a $10 billion (¥1.43 trillion) media giant.

The Japanese conglomerate is looking to cancel the deal due to a standoff over whether Zee Chief Executive Officer Punit Goenka, also its founder’s son, would lead the merged entity, the people said, asking not to be named as the information is not public. While the agreement signed in 2021 was that Goenka would lead the new company, Sony no longer wants him as CEO amid a regulatory probe, the people said.

Sony plans to file the termination notice before a Jan. 20 extended deadline for closing the deal, saying some of the conditions necessary for the merger had not been met, one of the people said. Goenka has stood his ground over prolonged meetings in the past few weeks in wanting to helm the merged entity, as agreed initially, according to another person.