Zee Entertainment shares plummet 32% after cancellation of deal with Sony Group – Kommersant
[ad_1]
Today, January 23, shares of the Indian company Zee Entertainment Enterprises (ZEEL) fell by 32%. This is how the market reacted to solution Sony Group terminated the deal to merge the assets of both companies in India. According to the publication India Today, today could be the worst day ever for Indian company stocks. Experts are already expressing doubts about Zee Entertainment’s prospects in the highly competitive Indian market given this development.
Announcing the termination of the deal yesterday, Sony Group noted that this event would not have a significant impact on its reporting. Meanwhile, Zee Entertainment’s situation is much more serious. At least six brokerage firms have advised investors to sell Zee shares. And today’s drop in shares has reduced the market value of the Indian company by more than $800 million. Since the beginning of the year, Zee shares have lost more than 45% of their value.
Vivekanand Subbaraman, an analyst at brokerage company Ambit Capital, told the agency Reutersthat the situation could cost Zee its current second place in the Indian broadcast market.
“Zee faces a major challenge in that its television business is rapidly shrinking, with advertising revenues in 2023 still 22% below 2019 levels,” says the expert. In the first half of the current financial year, Zee’s net profit fell 68% amid lower advertising revenue and a 20% rise in costs.
[ad_2]
Source link
