Zee Entertainment Enterprises Ltd (ZEEL) tumbled over 33% Tuesday and touched its 52-week low of Rs152.50 on NSE following a termination letter sent by Sony to call off the merger
Indian media giant Zee will take legal action against Japan-based Sony Group; the proposed merger would have created India’s largest broadcasting company.
NEW DELHI/BENGALURU (Reuters) -Japan's Sony Group said on Monday it has sent a termination notice to Zee Entertainment to call off a $10 billion merger of their Indian operations, following an impasse over who will lead the combined entity. The deal, announced more than two years ago, was perceived as crucial for the survival of the companies in a highly competitive market, given the impending merger between Disney's Indian businesses and the media assets of billionaire Mukesh Ambani's Reliance Industries. Sony said it had been "engaged in discussions in good faith to extend the end date but the discussion period had expired without an agreement upon an extension of the end date".
As the $10 billion merger deal with Sony (now Culver Max Entertainment) fails after nearly two years of deliberations, the big question in the face of looming competition and other challenges is, what next for Zee? The obvious answer for this India-born company seems to be from within India itself, , zee entertainment, Sony-Zee Merger, subhash chandra, punit goenka
Sony "terminated" on Monday the $10-billion merger of its Indian operations with local rival Zee Entertainment that would have created a new streaming giant in the world's most populous nation.
The brokerage also sharply slashed its price target for the stock by 34 percent to Rs 198 in anticipation of a slump in Zee's valuation post the cancellation of the mega merger.