Mumbai: As per Bloomberg, Sony Group Corp. has officially informed Zee Entertainment Enterprises Ltd. about its decision to cancel the merger between its India unit and the media network, bringing an end to a two-year acquisition saga. This move leaves Zee exposed to competition as its rivals strengthen their positions. The Japanese entertainment giant sent a termination letter to Zee on Monday, and it is expected to be disclosed to the exchange later, according to anonymous sources. The termination is attributed to the failure to meet the conditions of the merger agreement, as stated in the letter seen by Bloomberg.

The termination comes after a prolonged deadlock between the companies, primarily revolving around the leadership of Zee's CEO, Punit Goenka, in the merged entity. This issue arose amid an investigation into Goenka's conduct by India’s capital markets regulator. The standoff has now seemingly thwarted the deal, which had the potential to create a $10 billion media giant capable of competing with global powerhouses like Netflix Inc. and Amazon.com Inc.

Sony's termination letter arrived following the expiration of a 30-day grace period over the weekend, during which the two sides failed to reach an agreement on a deadline set in late December.

We will wait for an announcement from Sony, and Zee."