Zee Zooms 4% on Renewed Sony Merger Talks

19 Mar 2024 , 10:36 AM

Zee Entertainment Enterprises witnessed a notable surge in its share price, climbing over 4% during morning trades on the NSE on February 20. This uptick followed reports indicating that Zee and Sony Pictures Networks (India) were exploring another attempt to revive their mega merger deal. At 12.38 pm, the stock was trading at ₹185.05, reflecting investor optimism regarding the potential revival of the deal.

According to a report by The Economic Times on February 20, Zee Entertainment Enterprises Ltd (ZEEL) and Sony Pictures Networks (India) are actively working towards salvaging their $10-billion merger, which was called off on January 22. The report highlighted that meetings have been held over the last fortnight to explore possibilities to resurrect the deal. 

According to the sources, Zee is expected to convey its decision to Sony within the next 24-48 hours regarding its willingness to accept the terms and conditions of the proposed merger.

The failure of the previous merger deal was attributed to various factors, including the lack of consensus over the leadership of the merged entity. One of the key hurdles emerged when uncertainties arose regarding who would head the combined company after Zee MD and CEO Punit Goenka, the initially agreed-upon candidate, became subject to a SEBI probe.

In response to the developments, Hiroki Totoki, President, COO & CFO of Sony, expressed optimism about India's long-term growth potential during a post-earnings call. He emphasized India's appeal as a promising market and affirmed Sony's commitment to exploring diverse opportunities in the region. Totoki stated, 'We will try to seek various opportunities, and if we can find another opportunity that would replace this type of plan.'