In the aftermath of the shelved $10 billion merger between Sony’s (NYSE:SONY) India unit and Zee Entertainment (ZEEL), the unit’s CEO has sought to reassure its troops in a letter to employees, according to Bloomberg. Reportedly, the Japanese entertainment powerhouse now aims to drive its subscriber numbers and revenue with a focus on content. The India unit will also look at “Inorganic possibilities” to boost its market standing.
Separately, Sony has initiated arbitration proceedings against ZEEL in Singapore, accusing the company of a breach of the merger agreement. Sony walked away from the deal amid a stalemate over whether ZEEL CEO Punit Goenka could lead the merged entity. Goenka and his father, the founder of ZEEL, have been accused of abusing their position and siphoning off funds by India’s SEBI (the Securities and Exchange Board of India).
Sony is now seeking nearly $90 million in damages from Zee. The scuttled M&A deal led to a nearly 30.5% drop in ZEEL’s India-listed shares yesterday.
Is SONY a Good Stock to Buy Right Now?
On the other hand, SONY’s share price has ticked up by over 1% in the past five sessions and by over 11% over the past year. Overall, the Street has a Moderate Buy consensus rating on Sony Group, and the average SONY price target of $106 points to a further 7.34% potential upside in the stock.
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