Not involved in any negotiations with Sony for merger: Zee

Zee Entertainment clarified that the company is not involved in any negotiations with Sony Group for the $10 billion merger deal. 

On Tuesday, the Economic Times reported that Zee and Sony had reopened discussions about a potential merger, with a decision expected within 48 hours. Subsequently, numerous news portals disseminated this information. As a result, Zee's stocks surged by over 10%.

In response to the market activity, the Bombay Stock Exchange (BSE) sought clarification from Zee, citing a MoneyControl article titled "Zee stock gains 4% on reports of attempt to revive $10-billion Sony deal".

Zee in its clarification said, “We categorically confirm that the abovementioned news item is factually incorrect.”

It further said, “We wish to clarify that the Company is not aware of any information that has not been announced to the exchanges which could explain the aforesaid movement in the trading, and we are not in a position to determine the material impact of the above-mentioned article on the Company.”

Sony formally terminated the merger on January 22, 2024. That time it had said ZEEL failed to satisfy merger conditions and also initiated arbitration proceedings before SIAC claiming $90 million as a termination fee, which was eventually rejected. 

On the other hand, ZEEL filed a petition before the NCLT, seeking a direction for Sony group to implement the merger. ZEEL also initiated legal actions to contest the claims of $90 million filed by Sony Group before SIAC.

Info@BestMediaInfo.com