Zee Entertainment Shares Fall on Reports of Sony Calling off Merger Deal

By P.R. Venkat

Shares of Zee Entertainment Enterprises fell sharply Tuesday after news reports that Japan's Sony Group may call off a merger of its India operations with the former.

Zee Entertainment shares fell as much as 13% and were last down 6.7% at 258.75 Indian rupees ($3.12).

Bloomberg, citing people familiar with the situation, had reported Monday that the Japanese conglomerate was planning to scrap the merger of Sony Pictures Networks India with Zee over a disagreement on who would lead the $10 billion entity.

Sony and Zee didn't immediately respond to requests seeking comment.

In September 2021, Sony India and Zee struck an agreement to merge. As part of the deal, Zee's managing director and chief executive, Punit Goenka, was to lead the combined entity.

Under the terms of the deal announced in 2021, Sony India would have had a 52.93% stake in the merged entity, with Zee holding the remainder.

Then in September 2023, Sony said the merger was expected to be completed within a few months.

Zee produces content ranging from movies to music and is also involved in the theater business, and is in 173 countries.

Sony India is an indirect wholly owned subsidiary of Japan's Sony Group, and has television channels including Sony Entertainment TV. It has over 700 million viewers in India and is available in 167 countries.

Write to P.R. Venkat at venkat.pr@wsj.com

(END) Dow Jones Newswires

January 09, 2024 01:35 ET (06:35 GMT)

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