 "Sony-Zee")
Shares of Zee Entertainment Enterprises (ZEEL) surged 12 per cent to Rs 199.85 on the BSE in Tuesday's intraday trade, aided by heavy volumes, on reports that the company and Sony Group are in discussions that may save the $10-billion merger that was called off on January 22.
The two companies have held meetings in Mumbai over the last 15 days, The Economic Times (ET) reported.
At 2:35 PM, the stock was up 9 per cent at Rs 194.5 per share. Average trading volumes on the counter been more-than-doubled today with a combined 66.64 million equity shares changing hands on the NSE and BS, data shows. With today's gain, the stock price of ZEEL has recovered 28 per cent from a level of Rs 155.90 hit on January 23.
According to the report, Punit Goenka, managing director and chief executive officer (CEO) at ZEEL, has agreed to Sony's demand that he not become the CEO of the merged entity. The Japanese major has maintained that Goenka can be an adviser to the merged entity at best. CLICK HERE FOR FULL REPORT
Meanwhile, in the December quarter (Q3FY24) earnings call, ZEEL's management had said the merger termination letter sent by Sony has been reviewed by the Board and steps have been taken in consultation with legal experts.
The company has approached the National Company Law Tribunal (NCLT) for enforcement of the merger as per the agreement. Punit Goenka had offered several solutions and proposals to Sony, but none were accepted.
According to ZEEL, India's Media & Entertainment (M&E) industry is poised for sustained long-term growth given rising income levels and relatively lower spending compared to global norm. Content consumption in India is at an inflection point and has significant headroom to grow due to lower penetration, favorable demographics, and affordability.
Conducive digital infrastructure and increasing digital adoption in India paves way for long-term growth of OTT ecosystem. India M&E industry is expected to grow at a healthy pace of 10.5 per cent CAGR till CY25E, the company said in Q3 investor presentation.
Meanwhile, ZEEL had accelerated its technology and digital investments in anticipation of impending merger to be able to hit the ground running on merger synergies. Distraction or discontinuation on certain profitable businesses – three channels to be divested, discontinuation of certain profitable international businesses etc, the company had said.
The two companies have held meetings in Mumbai over the last 15 days, The Economic Times (ET) reported.
At 2:35 PM, the stock was up 9 per cent at Rs 194.5 per share. Average trading volumes on the counter been more-than-doubled today with a combined 66.64 million equity shares changing hands on the NSE and BS, data shows. With today's gain, the stock price of ZEEL has recovered 28 per cent from a level of Rs 155.90 hit on January 23.
According to the report, Punit Goenka, managing director and chief executive officer (CEO) at ZEEL, has agreed to Sony's demand that he not become the CEO of the merged entity. The Japanese major has maintained that Goenka can be an adviser to the merged entity at best. CLICK HERE FOR FULL REPORT
Meanwhile, in the December quarter (Q3FY24) earnings call, ZEEL's management had said the merger termination letter sent by Sony has been reviewed by the Board and steps have been taken in consultation with legal experts.
The company has approached the National Company Law Tribunal (NCLT) for enforcement of the merger as per the agreement. Punit Goenka had offered several solutions and proposals to Sony, but none were accepted.
According to ZEEL, India's Media & Entertainment (M&E) industry is poised for sustained long-term growth given rising income levels and relatively lower spending compared to global norm. Content consumption in India is at an inflection point and has significant headroom to grow due to lower penetration, favorable demographics, and affordability.
Conducive digital infrastructure and increasing digital adoption in India paves way for long-term growth of OTT ecosystem. India M&E industry is expected to grow at a healthy pace of 10.5 per cent CAGR till CY25E, the company said in Q3 investor presentation.
Meanwhile, ZEEL had accelerated its technology and digital investments in anticipation of impending merger to be able to hit the ground running on merger synergies. Distraction or discontinuation on certain profitable businesses – three channels to be divested, discontinuation of certain profitable international businesses etc, the company had said.
