Zee products are merging with Sony 2022

by crazysprings
Zee products are merging with Sony 2022

NEW DELHI: Shares of Zee Entertainment rose 6% in opening trade on Thursday after the company received conditional approval for its merger with Sony from the Competition Commission of India (CCI).

The deal, which was announced a year ago, received approval from the Competition Commission of India after the regulator agreed to the “voluntary treatment” offered by the parties. The watchdog said it approved the deal with some changes.

The deal is still subject to regulatory and other approvals, ZEEL said. In a separate statement, Sony Pictures Networks India said it was happy to receive ICC approval for the merger.

Following the development, shares of Zee Entertainment jumped over 6% to Rs 283.75, before paring some gains to trade at Rs 277.40 as of 09:45. The certificate touched Rs 267.50 on Tuesday.

Zee products

sony

Market analysts remain positive on Zee Entertainment after the merger, predicting that no major flagship channel will close down after the merger due to poor content. We believe that organizations can offer to close channels, but the impact on their income may be small because the channels may be demanding and not attract the demand of customers, said Karan Taurani of Elara Capital. He maintained his reputation on Zee.

Traffic analysts expect that the final CCI process will follow in the next three weeks, which will provide more details in this regard. Shareholders will meet on October 14 for approval. The process could take another 15 minutes and the merged company could be seen in early FY25, if all approvals fall within the timeframe, experts said.

Pankaj Pandey, Head of Research at ICICIDirect said: “We still don’t know the best details on whether there will be a decline in the GEC channel model in the region, but we have a buy rating on the market. ‘stock” .

Global brokerage CLSA is also positive on social media and believes that CCI’s support of Zee and Sony’s tie-up is a big positive and a catalyst for stock appreciation. Sony, once merged with Zee, will be listed on the Indian stock exchange, holding 51% in the new company at $ 1.5 billion. “The valuation of Zee shares is very attractive and we recommend buying it with a target price of Rs 316,” he said.

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