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Sony Board to Decide on $10-Billion Merger with Zee Entertainment Amid Leadership Dispute

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News on MEA 2 1 ArdorComm Media Group Sony Board to Decide on $10-Billion Merger with Zee Entertainment Amid Leadership Dispute

Sony Group has convened a board meeting on January 19 to determine the fate of the proposed $10-billion merger with Zee Entertainment Enterprises. The decision, expected to be communicated to the Tokyo Stock Exchange next week, may indicate a potential discontinuation of the merger plan. The key point of contention revolves around the leadership of the merged entity, particularly the role of Punit Goenka, Zee’s current CEO and son of its founder Subhash Chandra. Despite the 2021 agreement designating Goenka as the CEO of the merged company, Sony has shifted its stance and is reluctant to have him lead the entity. This change is exacerbated by an ongoing regulatory investigation, with the Securities and Exchange Board of India (SEBI) alleging deceptive practices by Zee, including false claims about loan recovery and misuse of positions by Chandra and Goenka. The protracted stalemate over leadership has raised concerns within Sony about proceeding with the deal. Even after Goenka’s voluntary decision to relinquish the CEO position following the merger, uncertainties persist. Zee Entertainment’s request to extend the deadline for completing the deal, originally set for December 21, 2023, indicates unresolved issues, including the leadership role of Goenka, requiring additional time for negotiations. Insiders at Sony suggest that even if Goenka agrees to step down, meticulous scrutiny of condition precedent pacts and financial adjustments must occur before finalizing the merger. Zee’s financial performance has seen a significant decline since the merger announcement, with net profit plummeting from Rs 956 crore in FY22 to Rs 48 crore in FY23. The outcome of the board meeting carries significant implications for the future of the merger, as insiders indicate that for the deal to progress, Goenka may need to step down on the day the new merged company is established. The decision will shed light on whether Sony and Zee can overcome the leadership dispute and move forward with the high-profile merger.

Truck Drivers’ Nationwide Protests Cease Following Government Assurances on New Hit-and-Run Law

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News on Goverrnment ArdorComm Media Group Truck Drivers’ Nationwide Protests Cease Following Government Assurances on New Hit-and-Run Law

In a pivotal development, the nationwide protests led by truck drivers against the recently proposed hit-and-run law have come to an end after the government provided assurances to the All India Motor Transport Association (AIMTC). The protests erupted in response to the Bharatiya Nyaya Sanhita, a new criminal code, which prescribed stricter punishments for hit-and-run cases. After a meeting with Union Home Secretary Ajay Bhalla, AIMTC Chairman Malkit Singh Bal announced that the government had clarified that the new laws had not been implemented yet. Moreover, the implementation would only occur after thorough consultations with AIMTC. “We met and discussed the provisions under the Bharatiya Nyaya Sanhita, and all issues have been resolved. The new laws have not been implemented yet and will only be implemented after consultation with AIMTC,” stated Bal. Following this assurance, the transport body declared an end to the truck drivers’ strike, urging all drivers to resume their operations promptly. The hit-and-run law’s new provisions proposed a substantial increase in penalties, including a potential jail term of up to 10 years or a ₹7 lakh fine for truck drivers failing to report accidents promptly. The previous Indian Penal Code (IPC) stipulated a two-year imprisonment for the offense. Union Home Secretary Ajay Bhalla emphasized the government’s commitment to engaging in discussions with AIMTC representatives before implementing the Bharatiya Nyaya Sanhita 106/2. The resolution of the protests alleviated concerns that had triggered chaos in several states, with people resorting to panic buying and petrol pumps experiencing shortages. The truck drivers’ demonstrations also sparked a political dispute between the government and opposition parties. Congress, in particular, criticized the stringent provisions, labeling them as an “extortionist network” and “organized corruption.” Congress President Mallikarjun Kharge accused the government of penalizing the poor and hindering infrastructure projects.