Zee Entertainment today jumped up 7.5% to an intraday high at Rs.286.90, on the back of robust volumes; remaining buoyant even now.
The company announced today morning that it has received approval of Competition Commission of India for the amalgamation of Zee Entertainment and Bangla Entertainment with Culver Max Entertainment (formerly Sony Pictures Networks India).
ZEE and Sony together have a 36% viewership share in Hindi general entertainment and will now await remaining regulatory approvals to finally launch the new merged company.
The merged company will eventually lead the consumer transition from traditional pay TV into the digital future. It is widely expected that the merger will be fully completed by Q4FY23 and the benefits will start showing from FY24.
The next trigger for the stock will be the announcements of the conditions for the merger – whether some loss-making channels will be shut down or sold off.