The Sony Group sent a termination letter to Zee Entertainment Enterprises (Zee) on Monday, informing the company of its decision to call off the proposed $10-billion media merger deal, bringing an end to a protracted two-year acquisition process. 

The development comes after a crucial meeting was held on Friday, following which a final decision on the merger deal was expected. 

The termination notice was sent by the Japanese entertainment giant to Zee earlier on Monday. 

The termination is attributed to Sony citing unmet conditions outlined in the merger agreement, as indicated in the termination letter. 

Sony’s decision comes after an extended impasse between the two companies, primarily revolving around the leadership question for the merged entity. 

The disagreement revolved around whether Zee Chief Executive Officer Punit Goenka would assume the helm of the amalgamated company, especially given the ongoing regulatory investigation into his conduct by market regulator Securities and Exchange Board of India (SEBI). 

This leadership standoff has effectively derailed the merger, which, if successful, would have given rise to a formidable $10-billion media conglomerate with the financial clout to compete against global streaming giants such as Netflix and Amazon. 

The termination notice from Sony arrived after the expiration of a 30-day grace period over the weekend, during which the two parties had failed to reach a consensus on the deadline set in late last December.