Zee Entertainment Enterprises Ltd’s (ZEEL) shares jumped over 7% following a media report suggesting that the company’s MD and CEO Punit Goenka has offered to give up the role of chief executive of the merged entity post-merger with Sony Pictures.

ZEEL shares hit an intraday high of Rs 264.00, up 7.3% from its previous closing price on the National Stock Exchange (NSE). At 02:45 pm, the stock was trading 2.7% higher at Rs 252.50. 

Earlier this month, a Bloomberg report surfaced claiming that the Sony Group is planning to call off the merger of its Indian unit with the firm due to a conflict over the leadership of the merged entity. 

Although the 2021 agreement indicated that ZEE’s chief executive officer (CEO), Punit Goenka, would lead the merged entity, Sony India wanted its chief executive officer (CEO), NP Singh, to be the top boss of the merged entity.

As per an Economic Times Now report published on January 18, Goenka offered to give the chief executive role of the merged entity during the recent dialogues between the companies but has not agreed to the appointment of NP Singh as the CEO either.

The $10 billion mega-merger deal between Sony Pictures Networks India and ZEEL was expected to be completed by December 21, 2023. ZEEL requested a deadline extension to resolve critical issues and make the merger scheme effective.