Get ready for a major market shake-up as reports surface of Zee Entertainment and Sony Pictures Networks rekindling their $10-billion merger deal. Stock prices surge as investors anticipate the revival of this blockbuster agreement.
Zee Entertainment Enterprises and Sony Pictures Marger
Zee Entertainment Enterprises Ltd (ZEEL) saw a significant 6 percent increase in its share price on February 20, following a day of gains on the National Stock Exchange (NSE). The stock closed at Rs 190.40 by 3:30 pm, amidst reports of a potential revival of the mega-merger deal between ZEEL and Sony Pictures Networks (SPN) India.
Reports from The Economic Times on February 20 suggested that ZEEL and SPN India are exploring options to resurrect their previously called-off $10-billion merger deal. Over the last fortnight, discussions have been held in an attempt to salvage the deal, although the details of these meetings could not be independently verified by Moneycontrol.
ZEEL is expected to communicate its decision to Sony within the next 24-48 hours regarding its willingness to accept the revised terms and conditions proposed for the merger.
Must Read
Sony Pictures Networks
Hiroki Totoki, the president, COO & CFO, expressed optimism about the Indian market’s long-term growth potential during a post-earnings call. He highlighted India as an appealing market and emphasized the company’s commitment to exploring various opportunities in the region. Totoki stated that if another opportunity arises that aligns with their strategic plans, the company would pursue it as an alternative to the failed merger deal.
The collapse of the earlier merger deal was attributed to several factors, with one significant issue being the lack of consensus regarding the leadership of the merged entity. Punit Goenka, the Managing Director and CEO of ZEEL, who was initially agreed upon as the candidate to lead the combined entity, came under scrutiny due to a probe initiated by the Securities and Exchange Board of India (SEBI). This uncertainty regarding leadership contributed to the breakdown of the merger agreement.
Bhaarat Bulletin’s Shikha Rai, Bimal Dev, and The Economic Times have contributed to the above report
Also Read