Shares of Zee Entertainment Enterprises Ltd zoomed 9% today after the firm issued a clarification to an article which said Disney Star was considering taking a legal action against Zee for backing out from $1.4 billion deal. Zee Entertainment shares rose 9 per cent to Rs 176.20 against the previous close of Rs 161.60 on Tuesday. The large cap stock opened higher at Rs 162.90 on BSE. Total 16.42 lakh shares of the firm changed hands amounting to a turnover of Rs 28.02 crore. Market cap of Zee Entertainment rose to Rs 16,742.91 crore.
The stock hit a 52-week high of Rs 299.05 on December 12, 2023 and a 52-week low of Rs 152.50 on January 23, 2024 on BSE.
The share has lost 21.87 per cent in one year and fallen 40 per cent since the beginning of this year. In a month, the stock has corrected 37.61 per cent.
In terms of technicals, the relative strength index (RSI) of Zee Entertainment stands at 22.8, signaling the stock is trading in the oversold zone. Zee Entertainment stock has a one-year beta of 0.7, indicating very low volatility during the period. Zee Entertainment shares are trading lower than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages.
A report said Disney Star may take legal action against Zee Entertainment for backing out from a $1.4 billion sub-licensing agreement for TV broadcast of international cricket matches in India.
Zee Entertainment in a clarification to bourses said the company was not aware of, and cannot comment on, Star India Private Limited’s (“Disney Star”) intentions or next steps with respect to the strategic license agreement entered between the company and Disney Star. It appears that the captioned news item mentions Disney Star’s internal discussions/plans, which the Company cannot remark on.
On January 25 this year, Zee Entertainment Enterprises conveyed to Walt Disney it does not intend to move forward with a deal to pay around $1.4 billion for cricket TV rights it acquired from the US firm.
On August 30, 2022, Zee Entertainment announced that they had entered into a strategic licensing agreement with Disney Star under which it was given the television broadcasting rights for the ICC Men's and Under-19 global events for a duration of four years. Disney Star bagged the broadcast rights of all ICC events for four years from 2024 to 2027 for the Indian market from the sport's global governing body.
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