India’s Zee Entertainment Enterprises Ltd. may be revisiting merger talks with Sony Group Corp. after ending negotiations nearly a month ago. The talks, which had been in progress for two years, were canceled by Sony subsidiary Culver Max Entertainment Ltd. (formerly Sony Pictures Network India Private Ltd.) in January. The decision was reportedly due to disagreements over leadership of the new company and Zee’s struggles with rising streaming costs and a weakened advertising market.
However, a recent report in The Economic Times indicated that progress has been made in reviving the discussions, with both parties holding meetings in the last two weeks. Despite remaining differences, Zee is expected to make a decision on the deal terms within the next 48 hours. The Indian company’s net profit has surged 141% in its most recent quarter, boosting its confidence in the potential merger, though Sony has expressed concerns about the erosion of the original deal’s value.
Shares of Zee Entertainment Enterprises Ltd. (IN:505537) soared 10% in response to the news, while U.S.-listed Sony shares fell 0.7% in early trade on Tuesday. Neither company has commented on the recent developments.
This potential deal follows the initial announcement of talks for a $10 billion tie-up between Zee and Sony in 2021. The subsequent cancellation of negotiations highlights the challenges faced by both companies in reaching an agreement. As the situation continues to evolve, the future of this high-stakes merger remains uncertain.
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