Zee Entertainment’s stock dropped by 3% on February 29, following Sony Pictures Networks India’s official withdrawal of its merger proposal with Zee. This decision was announced after unmet conditions led to the termination of the merger plan. At 1.23pm, Zee’s shares traded at Rs 158.75 on the NSE, with trading volumes reaching 6 crore shares, far exceeding the one-month daily average of 4 crore shares.
The end of the Zee-Sony merger, a topic of media attention for the last two years, came abruptly on January 22. Sony Pictures had envisioned a $10-billion media giant through this merger. Sony entities Culver Max and Bangla Entertainment also pulled out from the agreement, demanding a $90-million termination fee from Zee due to unfulfilled conditions.
The failed merger was previously seen as a significant growth opportunity for Zee Entertainment, which has faced various corporate governance controversies. The collapse of this deal has negatively impacted market sentiment towards Zee, showing a challenging road ahead for the media company without the anticipated benefits of the merger.
