Why Sony's Stock Jumped Today
Shares of Japanese conglomerate (NYSE: SONY) gave investors some really great news on Tuesday, announcing it had settled all merger-related disputes with Zee Entertainment Enterprises. Sony's India subsidiary had planned to merge with Zee in a $10 billion deal, but that was abandoned earlier this year, leading to litigation between the two companies.
In part because of the rapidly changing landscape in Indian media, Sony and Zee decided to settle their differences and move on without any obligations to the other. Zee's shares jumped 12% in reaction, although they're still down big from before the merger was abandoned.
India is a huge market for media companies but it's been difficult for outsiders to break in or find partners that could help drive profitable growth. And the pandemic-era valuations didn't last for media companies facing an uncertain box office and slowing growth in streaming.
Source Fool.com
