India’s US$10 billion merger between Zee Entertainment Enterprises and Sony’s domestic business is once again in doubt, after reports that the Japanese conglomerate was considering pulling out of the deal sent shares tumbling.The deal, which saw Zee’s share price fall by 10% at one point, has been in the works since December 2021 and would see around 90 channels coming under one roof, as well as streaming operations and a sprawling studio business.However, Zee missed a 21 December deadline to formally close the merger having failed to dispose of certain assets, while disagreements remain around who would run the merged company.Zee’s Punit Goenka had been lined up for the role but was subsequently banned from leading any company by local regulators for allegedly diverting funds. Although that ruling was subsequently overturned, Sony reportedly still holds doubts.The Indian media giant has also seen its earnings fall over recent months, with earnings before interest, tax, depreciation and amortisation (EBITDA) falling almost 40% in 2023 as content costs soared.Zee is still working to complete the deal ahead of a 20 January deadline according to Bloomberg, which yesterday reported that Sony was preparing to formally end discussions but was maintaining dialogue.The Financial Times also reported earlier today that the Japanese company’s chiefs remain “hopeful” that a deal can be completed, citing unnamed sources close to the talks.If the deal moves ahead, Sony will take a majority stake in the newly forged firm, which will be a major force across India.The country’s media landscape has been in flux over recent months, with Disney recently holding discussions to create a joint venture between its Star business and Reliance Industries.The Mouse House has seen its Disney+ Hotstar streamer hit over the past 12 months, after it lost streaming rights to IPL cricket.
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