Nearly a month after ending merger talks with Sony Group Corp., India’s Zee Entertainment Enterprises Ltd. may be ready to try again for a deal that had been in the works for two years.
Shares of the Indian media giant
505537,
soared 10% in Bombay on Tuesday, following a report in India’s daily business newspaper, The Economic Times, in which sources said a last effort to revive those talks was underway and had made progress recently.
Sony Pictures Network India Private Ltd., now known as Culver Max Entertainment Ltd. and a wholly-owned subsidiary of Sony
SONY,
called off talks with Zee in January. In 2021, the two announced talks over a $10 billion tie-up.
Media reports had said those talks ended because the two companies couldn’t agree on who would lead the new company, and because Zee’s revenue had been suffering from higher streaming costs and a weaker advertising market.
The Times report said both Sony and Zee representatives had been holding meetings and the last two weeks had seen progress, though key differences remained. Zee is expected to notify Sony within 24 to 48 hours on whether it accepts the deal terms.
As Zee’s net profit in its most recent quarter surged 141%, the Indian company is more confident about its progress, though Sony reportedly has reservations about the value erosion that has taken place since the original deal terms in late 2021, the report said.
U.S.-listed Sony shares fell 0.7% in early trade on Tuesday.
Neither Zee nor Sony representatives could be immediately reached for comment.
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