Zee Entertainment stock rebounds, gains over 4% as company says Sony merger cancellation report 'baseless'

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Zee Entertainment bounced back strongly in today's intraday trade by gaining 4.48%, reaching ₹267.80 apiece, following a 7.64% drop in the previous trading session. The sharp uptick in shares today is attributed to the company's clarification regarding media reports suggesting a potential cancellation of the planned merger between Zee Entertainment and Sony Group.

Also Read: Sony may call off $10 billion mega-merger with Zee Entertainment On Monday, media reports claimed that Sony Group Corp was planning to call off the merger pact of its India unit with Zee Entertainment. The following day, exchanges sought clarification from the company regarding media reports.

In response, Zee Entertainment stated that the reports were factually inaccurate. Also Read: Zee denies Sony breakup news; shares trim losses "We wish to reiterate that the company is committed to the merger with Sony and is continuing to work towards a successful closure of the proposed merger," Zee Entertainment said in an exchange filing on Tuesday.

“Sony Group is actively engaged in discussions to merge its Indian subsidiary with Zee Entertainment Enterprises," the Nikkei reported today, citing people involved in the negotiations. The talks will continue until a January 20 deadline to close the deal, the Nikkei reported.

Also Read: Indian media landscape set for a shake-up, with or without M&As The deal, which was signed between Zee Entertainment and Sony Pictures Networks India in 2021, has a stipulated period of two years in which the merger was to be completed before December 21, 2023, including regulatory and other approvals, with a grace period of one month to complete the transaction. By January 21, the one-month grace period for extended negotiations