Zee Entertainment Stocks Drop After Sony Merger Fails

Zee Entertainment Enterprises witnessed a significant downturn with its stocks dropping by 30.50% to a low of Rs 152.50, marking a 52-week low. This decline came in the wake of the cancellation of its $10-billion merger with Sony Pictures’ Indian arm. The sharp drop wiped out all gains since the merger announcement in August 2021. Global brokerage firm CLSA downgraded Zee's valuation, and the stock closed at Rs 160.90 on the National Stock Exchange. Sony cited delays and issues for terminating the merger, seeking a $90 million termination fee. UBS Securities and Citi also downgraded Zee, expecting a 20% drop in the stock's value and anticipating increased competition in the media sector. With uncertainties looming over Zee's future, investors are closely monitoring the developments