Sony Group Corp has sent a termination letter to Zee Entertainment Enterprises Ltd (ZEEL), notifying its plans to call off the merger between its India unit and the media network, according to a Bloomberg report dated January 22. 

The report claims that the Japanese entertainment giant had sent a termination letter to ZEEL early on Monday, ending the two-year merger saga. The company is expected to notify the exchange about the termination later, people familiar with the plan told Bloomberg. 

According to the letter obtained by Bloomberg, Sony stated that the termination was due to non-compliance with certain conditions of the merger agreement. 

The deal did not materialise as the media giants were at a stalemate over the leadership of the merged entity. Although the original agreement indicated that ZEE’s chief executive officer (CEO), Punit Goenka, would lead the merged entity, Sony India wanted its CEO, NP Singh, to be the top boss of the merged entity.

The merger was originally expected to be completed by December 21, 2023. Sony agreed to a request by ZEEL seeking a deadline extension. The termination letter from Sony for the merger came after a 30-day grace period ended over the weekend when the two sides couldn’t reach the earlier deadline.