Sony-Zee merger talks: Sony had turned down Punit Goenka’s proposal for replacement of CEO

Mumbai: Zee Leisure Enterprises managing director and CEO Punit Goenka had proposed an answer to finish the impasse within the Sony-Zee merger talks – by providing to interchange himself as CEO quickly after taking cost of the merged entity, two individuals with information of the matter mentioned. However Sony scuttled the concept, insisting on NP Singh as its candidate for the nook room, they mentioned.

“Goenka had proposed to Sony that he was open to an impartial search course of to discover a new CEO to interchange him after he takes over,” one of many people cited above instructed ET. “He was even keen to supply ensures. Nonetheless, Sony favoured NP Singh because the CEO for the Zee-Sony merged entity.”

The particular person mentioned Goenka’s concern was that “because the CEO of Zee, he ought to really feel snug with the management of the merged entity, which he clearly wasn’t with Sony’s alternative”.

Earlier, Sony had opposed the concept of Goenka taking up because the managing director and CEO of the merged entity, citing inventory market regulator Sebi’s probe towards him and his father Subhash Chandra for alleged fund diversion from Zee to promoter group firms.

As a part of the scheme of association signed in December 2021, Goenka was to be the MD and CEO of the merged entity for 5 years “topic to and on the phrases as agreed between Punit Goenka and Sony Footage Networks India (SPNI)”.

On December 20, Sony agreed to increase the deadline by a month to make the merger scheme with Zee efficient. The one-month good-faith negotiations between the 2 firms – agreed upon on December 20 – will finish on January 21.The primary hurdle to the completion of the merger is the tussle between Goenka and Sony Footage Leisure’s high brass over who will grow to be the CEO of the merged entity, the individuals mentioned.

Whereas Sony is batting for its long-time media government Singh, Goenka believes that the Securities Appellate Tribunal’s (SAT) verdict setting apart the Sebi orders banning him from holding the highest government place has cleared the way in which for him to grow to be the MD and CEO of the Sony-Zee mixed entity.

One other particular person conscious of the negotiations mentioned Sony had supplied Goenka an advisory position and a board seat. “Sony is just not averse to rising the Rs 1,100 crore non-compete charge that they’ll pay the Goenkas,” the particular person added.

Sony and Zee refused to remark.