Leadership dispute stalls Zee-Sony merger talks

Merger talks between Zee Entertainment Enterprises and Sony's Indian arm have hit an impasse, with disagreements arising over the leadership of the merged entity, according to the latest media reports. Sony is advocating for NP Singh, the managing director of its Indian operations, to lead the combined company. This proposal is met with resistance from Zee, which had put forward its managing director, Punit Goenka. Goenka is currently under investigation, contributing to the deadlock.

Zee and Sony India have yet to respond to requests for comments from Reuters. The recent lifting of a ban on Goenka holding board positions in Zee Group companies by an Indian tribunal adds complexity to the situation. However, the tribunal specified that Goenka must cooperate with any investigation by India's markets regulator, SEBI. In June, SEBI had accused Goenka and Zee Group Chairman Subhash Chandra of actively diverting company funds, allegations both have denied.

The report suggests that failure to reach an agreement on leadership by December 21 could jeopardise the entire merger. Sony had previously announced a delay in the merger in September, anticipating completion "within the next few months." Meanwhile, reports indicate that Disney is nearing a deal to sell its India operations to Reliance Industries.

(With Reuters inputs)