Sony Keeping an Eye on Regulatory Developments Concerning Zee’s Founder-CEO
Ten News Network
New Delhi, 21st June 2023: Sony Pictures Entertainment said on Wednesday that it took the Indian markets regulator’s order prohibiting Zee Entertainment’s founder and CEO from holding board posts “seriously” and that it will continue to monitor developments that may influence its deal with Zee.
This was Sony’s first statement following the Securities and Exchange Board of India’s (SEBI) year-long ban last week on Zee Group Chairman Subhash Chandra and CEO Punit Goenka, who were accused of aggressively diverting corporate funds to the group’s associated firms.
Chandra and Goenka then filed a petition with the Securities Appellate Tribunal (SAT) to overturn the ban.
The prohibition comes as concerns over a potential delay in Zee Entertainment’s merger with Sony Corp’s local affiliate have resurfaced.
In late 2021, Sony and Zee agreed to integrate their television channels, film assets, and streaming services.
However, the transaction has been postponed due to a number of factors, including a court struggle with lenders over debt defaults by a Zee group subsidiary and allegations that stock exchanges were reconsidering merger authorisation.
