Zee and Sony Merger: Zee Entertainment Enterprises dismissed the rumours and called the News “Baseless”. They also share their de-rating and stock recoveries.
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Zee and Sony Entertainment channel are going to merge?
On 9th January,2024 the news spread across the world like a fire in the forest that Zee Entertainment is going to merge with Sony Pictures. After spreading the news, the ceo of Zee Entertainment released a statement on this matter, dismissing the report of merger and calling it factually incorrect and baseless.
What happened between Zee and Sony?
Zee Entertainment Enterprises Ltd shared a clarification on this matter and said that their shares started getting lower, so they are currently dealing with these factors. The Marge of these two big Sharks of the entertainment industry is expected to be the biggest conglomerate of India, with a huge market share of 28% or above. The collaboration between these two can include two film studios, tao video streaming services and 70 channels.
Image Source: CNBC TV18
According to the sources, the Marge has already received regulatory approvals from Bombay Stock Exchange (BSE), bourses National Stock Exchange (NSE) and Competition Commission of India (CCI) and the shareholders and stockholders of this company. In the last week of August,2023 market regulator of Securities and Exchange Board of India had barred both Punit Goenka and Subhash Chandra from holding the main position at Zee, until they probe over within eight months. National Company Law Tribunal (NCLT) of the Mumbai branch and also approved the Merger but in the end Sony denied the Marge.
However on 30th October, overturning Securities and Exchange Board of India’s ban, Securities Appellate Tribunal (SAT) let Goenka return to his position of CEO and MD of Zee Entertainment Enterprises.
According to Zee Entertainment this Marge will be committed with Sony local arm, a merger with 10 billion. According to him the deadline suppose to be 21st December, 2023 but Zee propose to extend the deadline four days before the deadline to 20th January, 2024 and the two companies agreed for the negotiation. However after sometimes before the deadline comes Sony filed the termination notice.
On 9th January, Zee released the clearance sharing 11% recovering from the day and 4% trading lower at 266.50. But the stock fell 12% this morning after Bloomberg shared the report of Sony calling off the Marge which was running from 2021. According to the sources they said over a standoff, Sony cancelled the deal on the fact that Zee CEO Punit Goenka will continue to lead the matter. As per the report Sony doesn’t want Punit Goenka as the CEO of Zee and Sony will send the termination letter on 20th January, 2024.
According to expertise, Zee was stuck between ₹180 – ₹300 over the last few years. As the news of Marge uncertainty creates lots of unnecessary issues which can affect Zee Entertainment’s stock. The stock of Zee Entertainment which remains 1.35 crore, should be ₹340.1 crores. Also in addition Zee shares a F&O ban list today, by which new positions can’t be created in stock. Later today it goes lower of ₹25,000 crore.
