Shares of Zee Entertainment saw a sharp 30% decline on Tuesday following the cancellation of its high-stakes $10 billion merger deal with Sony Pictures. The stock, last trading at 164.45 rupees, marked a loss of over $800 million in market value and is now down 36% since the merger announcement in September 2021.
Sony officially terminated the merger on Monday, demanding a termination fee of USD 90 million, citing alleged breaches by ZEE of the agreed-upon terms. In response, ZEE denied all allegations, emphasizing its commitment to shareholders’ interests.
ZEE stated, “The Board of Directors at ZEE is now actively evaluating available options and is committed to taking all necessary steps to safeguard the long-term interests of stakeholders. This includes exploring legal avenues and contesting claims made by Culver Max and BEPL in arbitration proceedings.”
R Gopalan, Chairman of ZEE Entertainment Enterprises, assured stakeholders that the company took all required steps in the integration journey over the last two years. He added that the Board would explore legal actions and contest claims in arbitration proceedings.
The breakdown in the two-year talks coincides with increasing competition, as Disney and Mukesh Ambani’s Reliance are in discussions to merge their Indian media assets.
(Inputs from agencies)
