Zee Entertainment Enterprises on Tuesday, February 20, categorically denied engaging in any negotiations with Sony Group Corp regarding their previously called-off $10-billion merger deal. The clarification came in response to recent reports suggesting a revival of talks between the two media giants.
In an official exchange filing, the company stated, "We would like to clarify that the company has not been involved in any negotiations, or any other event as stated in the above-mentioned article, and we categorically confirm that the above-mentioned news item is factually incorrect."
"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," it added.
Earlier reports from The Economic Times had indicated that Zee Entertainment Enterprises was making a last-ditch effort to resurrect the merger deal with Sony Group Corp, which was officially terminated on January 22. Representatives from both companies reportedly met in Mumbai in recent weeks, attempting to overcome major differences that led to the deal's initial breakdown.
Despite efforts to salvage the agreement, insiders familiar with the matter suggest that significant hurdles remain, and the renewed talks could face failure if unresolved differences persist, ET reported. Executives from both Zee and Sony are reportedly standing firm on their positions, heightening uncertainty over the potential success of the revived negotiations, the report added.
The news had a notable impact on Zee Entertainment Enterprises' stock performance, which rallied over 10% on Tuesday, pausing their three-day losing run. The stock gained after a report said that its $10-billion merger with Sony could be revived. The scrip was trading 9.72% higher at ₹195.85 apiece on NSE during today's late afternoon deals.
