zee sony merger: Zee to review its entire business portfolio after Sony calls off merger plans

Zee Entertainment Enterprises plans to review its entire business portfolio following the collapse of a merger with Sony Group Corporation’s India units.

The exercise is aimed at identifying businesses that generate maximum value and those that need to be focused on, Punit Goenka, managing director and chief executive, Zee, said during an analysts’ call on Tuesday to discuss December quarter earnings.

“We will be relooking at the entire portfolio of the business to see which businesses will add the maximum value to our portfolio and, therefore, what we need to focus on, and what we do not need to focus on going forward,”Goenka said, responding to an analyst query on the company’s plans for the sports business.

The termination of the merger deal by the India units of Sony has led to litigation between the two companies.

Zee has a substantial presence in the TV, OTT, music, and film businesses. In 2022, Zee re-entered the sports business by acquiring the media rights for the UAE cricket board’s International League T20 and ICC TV rights from Disney Star. It had to relinquish the ICC TV rights after the merger with Sony fell through.

Zee Q3 Profit Up at ‘58.5crZee’s net profit in the quarter ended December 31 soared 141% to ₹58.5 crore despite a 3% decline in revenue to ₹2,045 crore.Earnings before interest, tax, depreciation and amortisation or Ebitda fell 43% to ₹209 crore while expenses increased 5.4% to ₹1,836 crore.

Goenka said the company’s growth strategy is centred around frugality, optimisation, and quality content, as part of its target to achieve 18-20% Ebitda margin by FY26.

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