Sony killed the $10B Zee merger after two years over who would run it

On 21 September 2021 Zee Entertainment's board unanimously approved a $10 billion merger with Sony Pictures Networks India. The combined company would have had 74 channels, with Sony holding about 53%, and would have been India's fourth-largest media group after Google, Meta and Disney-Star — Zee brought an 18% entertainment market share, Sony 6%.

The deal spent two years clearing regulators and fighting creditors. Then on 12 June 2023 SEBI barred Zee chairman Subhash Chandra and CEO Punit Goenka from managerial positions over alleged fund siphoning. The ban on Goenka was lifted by the tribunal on 30 October, but Sony's trust was gone — by November it wanted its own India chief, NP Singh, to lead the merged entity.

In January 2024 Goenka offered to step down, but refused to accept NP Singh as his successor. On 22 January Sony sent a termination notice: closing conditions had not been met by the deadline and the sides could not agree on an extension.

Zee's shares fell 13%, their worst day since February 2023. The original pact carried a $100 million break fee, but the clause had lapsed with the December deadline — Sony later claimed $90 million, a dispute the two sides eventually settled.