Zee CEO: “Merger collapse won’t impact business”
January 26, 2024
By Chris Forrester
Punit Goeka, CEO at Zee TV, addressed all staff on January 25th and updated them about the merger fallout, saying there would be no impact on Zee’s day-to-day business.
“It is time to move on as a team, more importantly as a family. The intrinsic value and fundamentals of Zee remain unmatched,” he commented.
He said it was difficult to put a finger on what exactly went wrong, but they respected Sony for their decision. Goenka said: “Maybe Sony felt being on their own is better for them. Maybe it’s taken two years, and they ran out of patience. They have a right to call off the merger and we respect that.”
“We will move forward to protect our company on a standalone basis,” he continued. Goenka also assured staff there would be no layoffs due to the failed merger.
“We are an asset that a lot of global brands keep looking at,” Goenka added. “The merger has taken away a lot of capital but we are still a cash positive company and we have significant cash reserves.”
Sony’s CEO NP Singh also addressed his Sony staff in an email, and shared the company’s strategic vision after the fallout and plans to lead the media and entertainment space.
“As we close the chapter on our proposed merger with ZEEL, I want to take a moment to talk to you – not just as your CEO but as someone who has been on this journey with you. This change in our plans allows us to step into a new phase of our story, which I believe is full of promise,” he said in the email.
“Our journey towards the merger has been remarkable, showing us how resilient and dedicated we can be when working towards a common goal. As we transition from this phase, I am, along with the senior management team, committed to setting the company up for a long-term, strong future. We will actively explore new organic and inorganic possibilities to strengthen our market presence,” Singh added.
Sony has commenced arbitration action in Singapore, and is demanding a $90 million compensation for Zee’s failure to complete the merger.