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market | IST

Zee-Sony merger: Elara Securities says ARPU may rise, has a 'buy' call

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The 90-day exclusivity period of the Zee-Sony merge will end today. Karan Taurani, senior vice president, research analyst of Elara Securities India says the average revenue per user (ARPU) of the merged entities can increase. Taurani has a 'buy' call on the Zee Ent stock, check the target price here

The 90-day exclusivity period to conduct the due diligence for the merger of Sony and Zee Entertainment ends today, on December 21. The merged entities of two companies, that had announced the merger in September 2021, will have pricing power and will be able to increase the average revenue per user (ARPU), Karan Taurani, senior vice president, research analyst of Elara Securities India said.
ARPU is the measure of the revenue generated per user and is measured by the company's total revenue divided by its total number of users. Of the merged entity, Zee will own 47.07 percent stake, whereas Sony will own a 52.93 percent stake.
Elara Securities has a buy rating on Zee Ent with a target price of Rs 450 per share, nearly 25 percent higher than its current market price of Rs 342. The headline indices inched up 1.5 percent higher Tuesday at 10:33 am, with Sensex up 835 points to 56,657 and Nifty was up over 240 points to 16,854.