Analysts expect Zee Entertainment Enterprises Ltd. to merge. and Sony Pictures Network India Pvt. to appease the governance issues of the broadcaster founded by Subhash Chandra, and the combined entity to be a market leader in the country’s TV audience as well as to support global online streaming platforms such as Netflix, Amazon.
The two companies finalized the terms of the merger after an exclusive 90-day negotiation period that ended on December 21. Sony Pictures Networks will own a 50.86% stake in the merged entity, while Essel Holdings Ltd. 3.99%, according to an exchange record. Zee’s public shareholders will own 45.15%.
Punit Goenka will lead the merged company as Managing Director and Chief Executive Officer.
Zee Entertainment shares were up 2.4% Thursday at 9:35 am, against a 0.8% rise in the benchmark Nifty 50. Of the 22 analysts who follow the company, 17 are maintaining a “buy”. , four recommend a “hold”. ‘and a’ sale ‘is suggested, according to Bloomberg data. The overall 12-month consensus target implies an increase of 5.5%. Bloomberg Quint