Zee‘s share hit rock bottom on Tuesday going down close to 30% to hit a new 52-week low of ₹162. The massive slump today comes as the much-anticipated merger with Sony was cancelled. On top of that, Sony is said to be demanding over ₹700 crore from Zee as a termination fee.
The Investment: If you invested ₹10,000 in Zee on Sept. 22, 2021, when the merger was announced, you would have been able to buy around 30 shares of the company. Today, those 30 shares would be worth around ₹4,950.
Background: The Sony-Zee merger was supposed to be the biggest ever in India’s media/entertainment sector. When the merger was announced two years ago, shares of the company surged up over 30% in a single day on the hype.
However, what followed was a bunch of hurdles that eventually led to the demise of the $10 billion merger. If successful, the merger would have created a media giant bringing together over 70 TV channels, two video streaming services (Zee5 and SonyLiv) and two film studios (Zee Studios and Sony Pictures Films India.
Here is how analysts reacted to the collapse of the merger
Price Action: Zee’s share price was down 26.66% to trade at ₹169.70 on Tuesday afternoon.
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