Reiterating a buy rating with a target price of ₹415, CLSA said that if the deal is sealed, ZEE's valuation is likely to return to historical highs of 30 times. Zee Entertainment's shares ended down 0.8% at ₹367.45 on Wednesday.
CLSA said that Sony would have 51% ownership after the merger and would be able to appoint majority of directors.
The merged company would be bigger than sector leader Star India with a 33% market share in India TV viewership and its revenue in the 2023-24 financial year could touch $2.5 billion, said the brokerage. The likely profits could jump 2.5 times to $680 million, it said.
"ZEE is still in litigation with a large minority shareholder, which carries associated risks," said the brokerage.
Read More News on
Download The Economic Times News App to get Daily Market Updates & Live Business News.
Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
Read More News on
Download The Economic Times News App to get Daily Market Updates & Live Business News.
Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price