Japanese giant Sony (NYSE:SONY) has terminated its $10B merger deal between its Indian unit with local broadcaster Zee Entertainment and is seeking $90M in termination fees.
Sony (SONY) said it had engaged in “discussions in good faith” to extend the deadline to close the deal, adding that “conditions to the merger were not satisfied.” It does not expect any material impact on its financial results as a result of the termination.
Zee refuted Sony’s (SONY) claims, saying it would take all necessary steps to safeguard long-term shareholder interests, including legal action.
It was widely expected that Sony (SONY) would end the $10B merger, as the media giants could not agree on who would run the merged company, with the Japanese conglomerate unwilling to put Zee’s Punit Goenka in charge as he is facing a regulatory probe.
Sony (SONY) announced its agreement with Zee in December 2021, with the aim of closing the deal late last year.
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