Zee Entertainment shares hit the lower circuit as brokerages downgrade the stock after the cancellation of the merger with Sony. CLSA downgraded Zee to sell and mentioned the reported merger of Reliance and Disney Star as a competition. Nuvama and Elara also downgraded the stock, reducing the target price. Motilal Oswal downgraded Zee to neutral. Zee s near-term valuation is expected to stay suppressed due to uncertainties around its new strategy, litigation with Sony, and competition from digital media.
Factors like weak competitive positioning, corporate governance issues, and precarious financial health have made analysts bearish on Zee Entertainment Enterprises as the proposed $10 billion merger with Sony has been called off
India Business News: Sony Corp terminates the $10 billion merger between its India unit and Zee Entertainment Enterprises due to unmet conditions. Disagreements over leade
The two entities could have potentially combined their linear networks, digital assets, production operations and programme libraries to create a mega entertainment firm if the deal had gone through. What happened?