Shares of Zee Entertainment Plunge After Cancellation of Merger With Sony India

New Delhi: Shares of Zee Entertainment Enterprises Ltd. Plunged by around 10 per cent after the cancellation of a planned $10 billion merger with Sony Group’s India unit.

Zee’s stock traded at Rs 208.3, marking its lowest price since mid-July 2023. It has experienced an 8 per cent decline since the merger announcement in September 2021 and a 16 per cent drop in 2024.

On Monday, Sony Group Corp. formally communicated to Zee Entertainment Enterprises Ltd. its decision to cancel the merger with its India unit.

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.”

Zee Entertainment is planning to take legal action against Sony Group after the Japanese company backed out from the $10 billion merger in India.