Tech & Science

– Zee Entertainment’s shares dropped by 30% after the collapse of its billion merger with Sony’s local unit.
– The failed merger has raised concerns about Zee’s ability to compete in the market.
– Six brokerages have recommended selling Zee’s stock following the announcement.
– A merger between Zee and Sony could have posed a greater challenge to competitors like Disney, Reliance, Netflix, and Amazon.
– The breakdown of talks between Zee and Sony occurred amid increasing competition in the Indian media market.
– Zee has experienced declines in profit, advertising revenue, and cash reserves.
– Analyst Vivekanand Subbaraman suggested that Zee could lose its No.2 position in the Indian broadcast market due to difficulties in scaling up.
– Zee’s net profit fell by 68% in the first half of the current financial year, with advertising revenue down 3.5% and expenses up nearly 20%.
– Zee’s cash reserves decreased by 40%.
– Zee’s stock value decreased by more than 0 million since the merger announcement in September 2021.
– CLSA downgraded Zee’s rating and reduced its target price by 34%.
– The average analyst rating for Zee has shifted to “hold” from “buy,” with a median price target decrease of 16%.
– Analysts have varying forecasts for Zee’s stock price, with one predicting a further decline.
– Emkay Global does not expect Zee to remain independent and anticipates other potential suitors, but also warns of possible shareholder activism.
– Sony cited unmet “closing conditions” as the reason for the merger’s failure, with disagreements over leadership being a factor.
– Zee had proposed its CEO Punit Goenka to lead the merged entity, but Sony objected following an investigation into Goenka by India’s market regulator.