Shares of ZEE Entertainment Enterprises fell over 4 percent on December 19 amid uncertainty over its merger deal with Sony Pictures Networks India (SPNI), as the media firm sought for an extension of timeline to complete the amalgamation.

In a statement, SPNI, now known as Culver Max Entertainment Private Limited, said ZEE’s notice to exchanges is an acknowledgment that they will not be able to meet the December 21, 2023 deadline to close the merger.

"The notice triggers an existing contractual provision in the deal that allows for both parties to discuss the possibility of extending the deadline," said SPNI.

"SPNI is required to start those conversations but has not yet agreed to a deadline extension. We look forward to hearing ZEE’s proposals and how they plan to complete the remaining critical closing conditions,” it added.

At 10:46am, Zee Entertainment Enterprises shares were trading 3.5 percent lower at Rs 270.60 on the National Stock Exchange.

ZEE had earlier asked Bangla Entertainment Private Limited (BEPL) and Culver Max Entertainment Private Limited to extend the date required to make the merger scheme effective, as per the terms of the merger cooperation agreement.

"Pursuant to the Merger Cooperation Agreement dated December 22, 2021, entered into among the company, BEPL and CMEPL, the company has requested CMEPL and BEPL to extend the date required to make the Scheme effective," ZEE had informed stock exchanges.

CMEPL is an indirect wholly owned subsidiary of Sony Group Corporation (SGC). BEPL is also an indirect wholly owned subsidiary of SGC and a part of the SGC Group.

Last year, SPNI and ZEEL had entered into a non-binding term sheet to bring together their linear networks, digital assets, production operations and programme libraries. The combined entity will own over 70 TV channels, two video streaming services (ZEE5 and Sony LIV) and two film studios (Zee Studios and Sony Pictures Films India).

The proposed $10-billion merger of has received regulatory approvals from fair trade regulator CCI, bourses NSE and BSE, shareholders and creditors of the company.

In August 2023, the Mumbai bench of the National Company Law Tribunal (NCLT) also gave a go-ahead to the merger of ZEEL and Culver Max Entertainment.