Zee‘s share price was back in the red on Wednesday morning as the media giant’s problems seemed never-ending.

What Happened: The Securities and Exchange Board of India (SEBI), the country’s market regulator, has recently uncovered a significant financial irregularity within the accounts of Zee Entertainment Enterprises. According to a Bloomberg report, this discrepancy amounts to over $240 million, equivalent to approximately ₹2,000 crore. This revelation adds to the challenges facing the embattled media company, coming on the heels of the collapse of its proposed merger with Sony Group‘s Indian unit just a month earlier.

SEBI’s investigation into Zee’s founders has shed light on the redirection of funds totalling around ₹2,000 crores ($241 million) from the company. Notably, this amount surpasses initial estimates by SEBI investigators by nearly tenfold, indicating the magnitude of the financial discrepancy uncovered.

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Earlier on Monday several reports had indicated that Zee and Sony were in discussions to revive the merger agreement, which had faltered previously due to disagreements between the two media giants. The reports suggested that representatives from both companies had been convening in Mumbai, with efforts intensifying over the past two weeks to salvage the deal. However, Zee’s latest statement contradicts these reports, denying any involvement in negotiations to revive the agreement.

Zee Entertainment Enterprises (ZEE) issued a statement on Tuesday refuting claims of engaging in negotiations with Sony to revive the collapsed $10 billion media merger deal. In a clarification addressed to the stock exchanges, Zee emphasised that reports suggesting its involvement in talks with Sony to resurrect the deal were “factually incorrect.”

Price Action: ZEEL share price was down 9.99% to trade at ₹173.40 as the markets opened on Wednesday.

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