The much talked about two of Indian television's most visible networks Zee and Sony was slated to create a media behemoth that could dominate TV screens across the country. Despite being cleared by the competition watchdog and stock exchanges, the deal has been delayed due to objections from Zee's lenders and now the conduct of its Chairman and CEO is under the lens.
After Zee's Chief Executive Officer Punit Goenka and Chairman Subhash Chandra were banned from the board for two years, Sony has said that it is taking the matter seriously.
Deal still on the table
After the order by the Securities and Exchange Board of India, Sony Pictures Entertainment stated that it is watching the developments that could have an impact on the merger.
CEO Goenka, who also paid Rs 50 lakh to settle an insider trading case, and his father are facing regulatory action for diverting the firm's funds to other entities related to the group.
While commenting on the ban against Zee's CEO and its Chairman, Sony also maintained that the media speculation about the merger is erroneous.
As per the deal in its original form, Goenka was supposed to be MD and CEO, but after the SEBI order barring him from the board of Zee, both firms may have to look for a new chief exec.
