2024 looks like peaking already. If the ongoing row on Twitter was not enough, the big merger between Sony & Zee may not have happened. All the analysis of Indian OTT in 2024 depended on this merger and now things are falling apart.
The buzzy $10 billion merger between Zee Entertainment and Sony’s India arm appears to be on the brink of collapse, with reports suggesting that Sony is planning to issue a termination notice before January 20. This potential move dashes the hopes of creating the largest media entity in India. According to Bloomberg, Sony no longer wants Punit Goenka leading the merged entity amid an ongoing regulatory probe.
Despite the agreement signed in 2021 and regulatory approvals in place, the merger encountered challenges, leading Zee to seek a further extension of the December 21 deadline. The conversations extended to the leadership front, with Sony advocating for NP Singh as the top executive, while Zee favoured Punit Goenka.
Legal issues, including SEBI’s June allegations against Goenka and Zee Group Chairman Subhash Chandra for diverting company funds, added to the complexity. The Securities Appellate Tribunal lifted the ban on Goenka in October, but the fallout lingered. The combined entity aimed to control over 70 TV channels, ZEE5, Sony LIV, and two film studios, Zee Studios and Sony Pictures Films India. More than two years of doubts and hopes are now standing, only to be shattered.