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Zee share price tanks 25%, erases over ₹5k crore mcap as Sony calls off merger; brokerages downgrade stock
Zee Entertainment share price tanked 25 per cent in intraday trade on the BSE on Tuesday, January 23, to hit its lower circuit of ₹173.85 as the termination of the Zee-Sony merger deal instilled unease among investors, prompting apprehensions about Zee's future growth prospects and the overall valuation of its stock. Zee Entertainment share price opened at ₹208.60 against the previous close of ₹231.75 and fell 25 per cent to the lower circuit level of ₹173.85. At present, Zee Entertainment's current market capitalization stands at approximately ₹16,699 crore, a significant decrease from the nearly ₹22,260 crore recorded in the preceding session. This marks a substantial loss of approximately ₹5,561 crore in a single trading session. Speculations had been rife of late that the Zee-Sony deal could be called off. This weighed on the Zee Entertainment share price which is down nearly 16 per cent in January so far, as of the stock's close of the previous session. If we include today's low as well, the stock's loss in January so far goes up to 37 per cent. As Mint already reported, Sony Group Corp has sent a termination letter to Zee Entertainment Enterprises Ltd (ZEEL), citing its plans to call off the merger between its India unit and the media network. Sony in a statement, said, “The merger did not close by the end date as, among other things, the closing conditions to the merger were not satisfied by then. Sony Pictures Networks India Private Ltd (SPNI) has been engaged in discussions in good faith to extend the end date but the discussion period has expired without an agreement upon an extension of the end date. As a result, on January 22, 2024, SPNI issued a notice to ZEEL terminating the definitive agreements." Source - Mint
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