Zee promoter complained of market regulator scuttling merger with Sony

Subhash Chandra, founder-promoter of Zee Entertainment Enterprises, had written to finance minister Nirmala Sitharaman, accusing the market regulator of trying to scuttle the $10 billion merger with Sony India a week before the Japanese parent walked away from the deal. At the same time, minority investors wrote to the regulator and institutional investors, expressing outrage at the promoters.

Why it’s important: More murky details are emerging about the failed merger between Sony and Zee, which could now see protracted legal wrangles.

Four companies owned by media baron Subhash Chandra saw a sharp fall in their stock prices, led by a 33 percent decline in Zee Entertainment Enterprises. Zee Media Corporation and Dish TV India plunged 14 and 8.3 percent, respectively. Shares of Zee Learn, which faces bankruptcy proceedings, fell 2 percent. Notional wealth in the four firms eroded by Rs 7,705 crore in a single day.

Why it’s important: Zee is paying a heavy price by botching the merger with Sony. It is facing operational issues as well on subdued advertising and falling viewership. Moneycontrol