Nearly a month after calling off merger discussions with Sony Group Corp., Zee Entertainment Enterprises Ltd. of India seems poised to reignite negotiations for a deal that had been in the pipeline for the past two years.
Positive Market Response
The Indian media powerhouse witnessed its shares surge by 10% on Tuesday in Bombay, buoyed by reports in The Economic Times hinting at a potential revival of talks between the two companies.
Previous Stumbling Blocks
After talks were halted in January, mainly due to disagreements on leadership roles and Zee’s financial challenges, both parties have reportedly made progress in recent discussions. While obstacles remain, Zee is anticipated to provide a response on the deal terms within the next 24 to 48 hours.
Improved Financial Performance
With Zee's net profit spiking by 141% in the latest quarter, the company appears more optimistic about the prospects of moving forward with the merger. However, concerns linger from Sony's end regarding the devaluation since the initial deal discussions late last year.
Market Reaction
As news circulated, U.S.-listed Sony shares dipped by 0.7% during early trade on Tuesday.
Ongoing Developments
Despite challenging negotiations, representatives from both Zee and Sony have been engaged in discussions in recent weeks. The coming days are crucial as the fate of their potential merger hangs in the balance.
Neither Zee nor Sony officials were available for immediate comment on the matter.
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