Zee Entertainment (ZEEL) is currently the top loser on the BSE; Opening 10% lower at Rs.249.75, the stock slipped down further to Rs.242.30, down almost 13%.
The stock has slipped into the red as once again there is uncertainty over its merger deal with Sony.
Corporate grapevine is rife with news with the deal is likely to called off as both the companies refuse to budge from their respective stance over the appointment of Punit Goenka as the CEO of the combined entity.
20th of Jan’24 is their self imposed deadline to complete the deal and with the date coming closer and no stepping back by either, many feel that the deal might get called off. It will all come down ultimately to brinksmanship – who will blink first and will the clash of the egos remain so high that they will let the deal fizzle out rather than arbitrate. If merged, it would become the largest entertainment network in India with 70 TV channels, 2 video streaming services and two film studios.
Earlier Goenka had agreed, verbally, to the deal without him on the drivers seat but with temporary relief coming from the Securities Appellate Tribunal on the SEBI investigation, Goenka now wants to keep the original terms of the agreement.