Zee-Sony merger: Punit Goenka in no mood to give up CEO post as Sony explores other options

Any change could delay the merger further, say experts [View in browser]( [See all newsletters]( 09 November 2023 Zee-Sony merger: Punit Goenka in no mood to give up CEO post as Sony explores other options [ Punit Goenka] Even as [Sony Corp]( against appointing Punit Goenka as the MD and CEO of the [Zee-Sony merged entity]( Goenka has no plans to relinquish his future role in the merged entity. Sources close to matter told businessline that Goenka’s ambitions for the MD position have been bolstered after the [Securities Appellate Tribunal set aside SEBI’s order]( barred him from taking up any key managerial position. Crucial position It was only in June that Goenka had told shareholders that the merger of Zee-Sony will be completed “with or without” him at the helm. At the time, SEBI had barred Goenka from the boards of Zee Group after it found in its investigations that Goenka and Chandra had allegedly siphoned off funds from [ZEEL]( show false recovery of loans. Goenka was banned from Zee Group companies for at least eight months while SEBI completes its investigations. This put a wrench on Zee-Sony merger plans in which Goenka’s position as the MD and CEO of the merged entity was crucial part of the agreement between the two sides. With the merger being already delayed for two years, Goenka reassured all parties involved that the merger was a top priority and would go on without him too. Also read: [Zee Sony Merger: Here is why Zee investors can look forward to better timesÂ]( However, SAT’s decision last week appears to have bolstered Goenka’s resolve for staying at the helm. “Zee is working towards the merger as per the existing agreement with Sony. The agreement states that Punit Goenka will be the CEO. Any changes to the agreement will have to be approved by all stakeholders including the shareholders and NCLT,” said a source aware of the development adding that any changes to the agreement between Sony and Zee could delay the merger further. On the other hand, there are concerns over potential action against Goenka in the future given that [SEBI]( still continuing its investigation against him. Sources close to Sony said that the Japanese stakeholders of the company could back someone from within the Sony group to take up the top position of the merged company. Safe route “While SAT has set aside the ban, what if SEBI’s final report reinstates the ban on Goenka? SEBI could even challenge the SAT order in a higher court and get the ban reinstated. Perhaps Sony wants to take the safe route by appointing a non- controversial executive at the helm,” said a legal expert. Industry experts said the merger between Sony and Zee should not be delayed any further given that Reliance-backed [Jio Cinema/Viacom18 is close to merging with Disney-Hotstar](. “Both Sony and Zee realise that a merger is absolutely needed for survival. Reliance’s acquisition of Disney’s India properties will be an even bigger consolidation than a Zee-Sony merger, and in this case the consolidation of the media market into a duopoly is the only natural course,” the expert said. If Sony pursues appointment of another CEO, experts indicate that they will have to go back to and get the approvals again. This delays the merger, even as the Japanese company has committed to complete the merger in the first half of the 2024 fiscal. Abhishek Malhotra, former managing partner at TMT Law Practice, added that if Zee tries to resist the amendment in terms of the merger the process will get even longer. Zee is also likely to push for a change in merger terms if Sony insists on appointing another CEO than Goenka. Abhishek Malhotra, former managing partner at TMT Law Practice, added that if Zee tries to resist the amendment in terms of the merger the process will get even longer. Zee is also likely to push for a change in merger terms if Sony insists on appointing another CEO than Goenka. You Might Also Like [Be conscious of data privacy and cybersecurity issues, State Bank of India MD Chaudhary tells MFIs]( [Money & Banking]( [Be conscious of data privacy and cybersecurity issues, State Bank of India MD Chaudhary tells MFIs]( [Adani Ports CEO bullish on India growth story]( [Logistics]( [Adani Ports CEO bullish on India growth story]( [UBS raises India’s GDP forecast to 6.3% for FY24 with potential growth to 6-6.5%]( [Economy]( [UBS raises India’s GDP forecast to 6.3% for FY24 with potential growth to 6-6.5%]( [October 2023 was warmest on record globally, says EU weather agency]( [Agri Business]( [October 2023 was warmest on record globally, says EU weather agency]( Stay informed Subscribe to businessline to stay up-to-date with in-depth business news from India [arrow]( Copyright @ 2023, THG PUBLISHING PVT LTD. If you are facing any trouble in viewing this newsletter, please try [here]( Manage your newsletter subscription preferences [here]( If you do not wish to receive such emails go [here](