Sony likely to junk $10 billion merger with Zee amid standoff over leadership question

Sony Group Corp is planning to call off the merger pact of its India unit with Zee Entertainment Enterprises Ltd, said people familiar with the matter, capping two years of drama and delay in creating a $10 billion media giant.

The Japanese conglomerate is looking to cancel the deal due to a standoff over whether Zee’s Chief Executive Officer Punit Goenka, also its founder’s son, would lead the merged entity, the people said, asking not to be named as the information is not public. While the agreement signed in 2021 was that Goenka would lead the new company, Sony no longer wants him as CEO amid a regulatory probe, the people said.