Sony Group has sent a termination letter to Zee Entertainment Enterprises (Zee), 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, reported Bloomberg News.

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 reportedly sent by the Japanese entertainment giant to Zee earlier in the day and is anticipated to be officially disclosed to the exchange shortly, according to sources familiar with the matter who preferred to remain anonymous ahead of the public announcement.

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

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