Sony Group Corp. has referred to as off its merger with Zee Entertainment, and has official knowledgeable Zee Entertainment Enterprises Ltd. of its choice to terminate the merger between its India unit and the media community, per a Bloomberg report, which mentioned the termination was disclosed early Monday by Sony, and was attributed to unmet circumstances specified within the merger settlement. Sony Group Corp conveyed the termination by way of a letter despatched to Zee, and is anticipated to formally disclose it to the Tokyo Stock Exchange later.

The termination comes amid a standoff between the 2 firms over the management of the merged entity, significantly the function of Zee’s CEO, Punit Goenka.

Sony Group Corp’s choice follows the tip of a 30-day grace interval throughout which the 2 events failed to achieve an settlement on a late-December deadline.

Zee Entertainment Enterprises had beforehand requested an extension to the merger deadline from Culver Max Entertainment (previously Sony Pictures Networks India Private Limited), and reiterated its dedication to the merger earlier this month. In a press release to the BSE, the corporate had acknowledged: “We wish to reiterate that the company is committed to the merger with Sony and is continuing to work towards a successful closure of the proposed merger.”

The merger, initially introduced in September 2021, had the potential to ascertain a multibillion-dollar media powerhouse encompassing tv, over-the-top (OTT) platforms, and content material creation.