|
Media reports indicated that Sony is expected to issue a termination notice to Zee before 20 January 2024. The merger between Sony and ZEEL was initially announced two years ago with the goal of forming India's largest broadcast company.
The potential cancellation of the deal stems from a disagreement over whether Zee's CEO, Punit Goenka, would lead the merged entity, contrary to the previous agreement made in 2021. Sony is reportedly no longer in favor of Goenka as CEO due to a regulatory probe.
Despite the merger deadline being 21 December 2023, both companies missed the date, with ZEEL claiming that Sony had agreed to extend the merger talks, while Sony had initially stated that it had not agreed to an extension but was open to hearing Zee's proposal for one.
Meanwhile as per the latest update on the stock exchanges, ZEEL has refuted claims made in the media about Sony terminating the $10 billion merger and has reaffirmed its commitment to the tie-up. The company has emphasized the factual inaccuracy in the media reports regarding Sony's alleged termination of the merger.
ZEEL is a media & entertainment company offering entertainment content to diverse audiences. It is present across broadcasting, movies, music, digital, live entertainment, and theatre businesses, both within India and overseas.
ZEEL reported 5.29% decline in consolidated net profit (from continuing operations) to Rs 129.88 crore in Q2 FY24 as against Rs 137.13 crore posted in Q2 FY23. Revenue from operations in Q2 FY24 was at Rs 2437.79 crore, registering a growth of 20.45% from Rs 2,023.89 crore recorded in the same period a year ago.
|