The ZEE-Sony merger is creating major headlines. Zee Enterprise’s largest shareholder, Invesco suggests a review on the new Zee-Sony merger.

Just as the entertainment industry was awaiting the merger with Zee-Sony, a major shareholder Invesco expresses dissatisfaction. The major concern is over the future leadership under Zee MD Punit Goenka. Though Invesco supports the proposed merger, they want the board to reconsider retaining Goenka.

Invesco said A newly constituted board supported with the strength of independence will be best suited to evaluate and oversee the potential for strategic transactions, like the one announced (with Sony), as well as to make determinations on the future leadership of the company.

“We note that the disclosure of September 22 (the merger announcement) refers to the future board composition of the company at a time when the current composition of the board is subject to a shareholder vote on the back of our EGM requisition.”

The major shareholder asked to call an EGM of all shareholders to seek the removal of 3 non-independent directors and include 6 new independent board directors. While two of the non-independent directors resigned, Goenka has not shown any indication to step down.

We continue to believe that the business (Zee) is valuable, whether on its own or in strategic alignment with partners such as Sony. However, decisions of material strategic import must follow and not precede actions towards the establishment of a proper and independent governance structure as determined by the company’s shareholders, read the Invesco letter signed by VP Aroon Balani.

On behalf of Zee, a spokesperson said, “The board is seized of the matter. The company will take the necessary action as per applicable law.”

Again, viewers and the entire industry has eyes on what the final decision is going to be. Will, what was supposed to be a win-win situation for both Zee and Sony is turning out to be an uphill task?