Category: GECs

  • Star India rev growth offset by incremental rights expense, weakness in ad rev: Disney management

    Star India rev growth offset by incremental rights expense, weakness in ad rev: Disney management

    MUMBAI: The purchase of 21st Century Fox, which was aimed at helping Walt Disney Company's future plans, is causing initial pain to the Bob Iger-led media conglomerate. In its fiscal third quarter result for 2019, Disney missed earnings expectations partly because of the worse-than-expected performance of Fox assets. Star India, the newly acquired premium property of Disney after the completion of the merger, was not able to live up to expectations.

    “We estimate Star generated about $150 million of operating income in the third quarter last year. Star's results this quarter came in well below our expectations and were driven primarily by a meaningful step-up in rights cost for the quadrennial Cricket World Cup and the Indian Premier League as revenue growth was more than offset by the incremental rights expense,” Disney Senior EVP and CFO Christine McCarthy said.

    Despite the initial challenges, Disney CEO Bob Iger highlighted the benefits of the deal such as the addition of Star and Hotstar to the Disney portfolio giving a significant presence in India. He added that it is a huge market with interesting dynamics notably, a rapidly rising middle class with a strong and growing appetite for media, especially sports. He also noted that Hotstar’s broad array of premium sports rights will serve it well over the next five years especially as it expands the service into markets across Southeast Asia.

    “It was the quadrennial Cricket World Cup, of course. They have their Indian Premier League, which is ongoing, but this is once every four years for the World Cup. There were a couple of significant games that were rained out. They have insurance coverage for some of those, but any proceeds would be in future periods. And there was also some weakness in advertising revenue that was related to the local advertising market,” Iger commented on Star’s performance in India.

    Disney also continued to spend big on streaming services such as Disney+, ESPN+, the platforms where it sees its future. Moreover, the firm also took full operational control of streaming platform Hulu, which further affected the balance sheet.

    Disney’s earnings per share (EPS) for the quarter decreased 28 per cent to $1.35 from $1.87 in the prior-year quarter where it was expected $1.74 by the analysts. Total revenue stood at $20.2 billion against the consensus estimate for $21.4 billion.

  • ‘Putting a smile on the faces of our soldiers’an initiative for the BSF Jawans by COLORS’ KhatraKhatraKhatra

    ‘Putting a smile on the faces of our soldiers’an initiative for the BSF Jawans by COLORS’ KhatraKhatraKhatra

    MUMBAI: It is said that the greatest sacrifices is when you sacrifice your own happiness for the sake of others. In a similar manner, our Indian soldiers leave their personal lives behind to guard the Indian border just to protect us. While they keep their country in mind before anything else, COLORS KhatraKhatraKhatra, a show known to spread a wave of laughter undertook a special initiative to spread smiles across the faces of our BSF Jawans. After entertaining the audience with over 100 episodes of fun, the queen of comedy Bharti Singh along with her comedy brigade – Harsh Limabachiyaa, AvikaGor, Aditya Narayan and Gauravvisited the Attari border and BSF camp in Amritsar to salute the BSF Jawans.The gathering was witnessed by 35,000 audience at the Indo-Pak border who were gleaming with laughter as the actors put up their best show for them.

    As the format of the show, involves playing a lot of tasks and pranks, the actors took these specially curated challenges to BSF jawans officials as well, who participated in them with true sportsman spirit.  Not only did they meet the officials, they also met with their families and performed several activities with them which are very popular in the show like Mic Spray, Musical Chair, Denture, Chinese whisper, Pictionary and many more.  The officers and their families had a joyful evening and were seen cheering for the actors and having an enjoyable time with them. 

    Commenting on her experience, Bharti Singh said, “I had an overwhelming experience to meet and spend time with our BSF jawans officials and their families.  To be able to bring joy to them instilled a sense of satisfaction in me as they are the ones whose selfless services keep us secured.  I am really inspired by each one of them of being so fearless, courageous, and such selfless human beings.”

    Harsh Limbachiyaa added, “We make so many excuses in our day to day life when we are not able to access or get through certain things, but these officers don't get to meet their families for months in order to keep the country safe. In our own way we just wanted to thank them and spread joy among them as what they do for us, can never be repaid in any form. I am very humbled to see smiles on their faces and thank COLORS and the entire KhatraKhatraKhatra team who helped in making this happen. When we saw them enjoying our act, we knew that our mission was accomplished.”

    Aditya Narayan said, “This is extremely a memorable experience for me and something that I’ll never forget. This visit gave me even more percent of patriotism in me as BSF is the first line of defence when it comes to any type of threats protecting from our neighbouring country.  At the same time, it was an absolute honour to spend time with them.  This is the first outdoor shoot that KhatraKhatraKhatra had and we are fortunate to having spent moments with the BSF Jawans on the special occasion of Independence Day. I can never forget the grilling sessions that these soldiers have in the morning, it just portrays their discipline, commitment and most importantly love for our country. I am going back home with a sense of peace that our male and female Jawans are there to take care and protect us."

    AvikaGor said, "This was my first time I visited Attari border and BSF camp.  My grandfather was a part of Indian air force and used to keep telling me stories about Indian army and our soldiers.  I still remember he used to tell me that I should once at least experience the and see the parade live.  I think his dream came true. I feel very proud that I got the opportunity to not only meet the BSF Jawans but also fortunate to perform various task with them. I want to specially thanks Bharti & Harsh as because of their hard work we were able to make this possible."

    To witness this heartwarming initiative, don’t forget to tune into KhatraKhatraKhatra, Independence Day special episode on 15th August 2019, only on COLORS!
     

  • Star India losses partially offset Disney’s international revenue

    Star India losses partially offset Disney’s international revenue

    MUMBAI: The giant media conglomerate Walt Disney Company could not reach Wall Street’s expectations for the quarter ended 29 June 2019. The company posted weaker than expected earnings per share and revenue in its Q3 results. Star India which now comes under Disney after the merger with 21st Century Fox affected the company’s revenue.

    Earnings per share (EPS) for the quarter decreased 28 per cent to $1.35 from $1.87 in the prior-year quarter while the expectation was $1.74 by the analysts. Total revenue stood at $20.2 billion against the consensus estimate for $21.4 billion.

    "Our third-quarter results reflect our efforts to effectively integrate the 21st Century Fox assets to enhance and advance our strategic transformation,” Disney Chairman Bob Iger said. “We remain confident in our ability to successful execute our strategy,” he added.

    Cable Networks revenues for the quarter increased 24 per cent to $4.5 billion and operating income increased 15 per cent to $1.6 billion. The company said higher operating income was due to the consolidation of 21CF businesses (primarily the FX and National Geographic networks) and an increase at ESPN.

    "Results for the quarter also reflected a benefit from the inclusion of the 21CF businesses due to income at the Fox and National Geographic international channels, partially offset by a loss at Star India,” the company said in a release.

    Direct-to-consumer and international revenues for the quarter increased from $827 million to $3,858 million and segment operating loss increased from $168 million to $553 million. The increase in operating loss was due to the consolidation of Hulu, the ramp-up of investment in ESPN+, which was launched in April 2018 and costs associated with the upcoming launch of Disney+.

    Studio Entertainment revenues for the quarter saw a 33 per cent increase to $3.8 billion and segment operating income increased 13 per cent o $792 million. Parks, Experiences and Products revenues for the quarter increased 7 per cent to $6.6 billion and segment operating income increased 4 per cent to $1.7 billion.

    "The incredible popularity of Disney’s brands and franchises positions us well as we launch Disney+, and the addition of original and library content from Fox will only further strengthen our direct-to-consumer offerings,”  Iger said in the earnings release despite the bumpy quarter.

  • Zee Bollywood to air Salman Khan’s 101% Shuddh Romantic film ‘Tere Naam’ on 9th August at 9PM

    Zee Bollywood to air Salman Khan’s 101% Shuddh Romantic film ‘Tere Naam’ on 9th August at 9PM

    MUMBAI: Power packed performances, melodious music and an airtight script that promises 101% Shuddh Romance, Tere Naam is a must watch for every Bollywood buff. Directed by Satish Kaushik and written by Bala and Jainendra Jain, Tere Naam stars Salman Khan and debutant Bhumika Chawla. Zee Bollywood with the brand promise of bringing to its viewers 101% Shuddh Bollywood movies will air the 101% Shuddh Romance movie Tere Naam on Friday, 9th August at 9pm.

    The movie not only did well at the box office hit but also gained immense popularity as fans went all out to ape the ‘Tere Naam’ look. From Salman’s middle parting haircut with long locks, to the blue bracelet and leather jacket, the movie enjoyed a cult following. The plot revolves around the life of Radhe Mohan (Salman Khan) who believes in tashan and violence. His world however turns upside down when he meets Nirjara (Bhumika Chawla), and falls in love with her. Nirjara refutes his proposal without giving him a second glance. Heartbroken, Radhe decides to move on but makes one last attempt to win her over just before she gets engaged. On Nirjara’s fiancés insistence that Radhe is a good man, she gives him a second chance and eventually falls in love with him. However, things take a dramatic turn when Radhe suffers from brain damage and ends up in a mental institution.

    Will the lovers unite? Or will fate tear them apart?

  • Disney-Fox merger sees more layoffs: Report

    Disney-Fox merger sees more layoffs: Report

    MUMBAI: The Walt Disney Studios (Disney) 21st Century Fox (Fox) merger continues to cost jobs with another round of layoffs this week. A large number of employees have been laid off from both sides. Since Disney completed its $71.3 billion acquisition of much of Fox, nearly 250 people have exited so far.

    A report from Variety revealed that the latest round of layoff comes in the backdrop of analysts’ prediction of more than 1000 jobs being eliminated due to the merger. According to the report, the latest episode has mainly impacted the production and visual effects departments.

    Visual effects head  John Kilkenny, feature production executive VP Fred Baron, physical production executive VP Dana Belcastro and post-production executive VP Fred Chandler are among the executives who have received pink slips on the Fox side. Those roles reported to Fox film production vice chairman and president Emma Watts prior to the acquisition. Although Disney has enacted three previous rounds of layoffs mostly impacting Fox staffers, severance packages have been generous.

    Disney also informed its staffs that it would shut Fox Research Library on or before 6 January 2020. Fox Library’s content would be integrated into Disney’s own archives. While the teams at the Walt Disney Archives (founded 1970) and the Imagineering Research Library will be evaluating and handling the collection, it is not clear yet if the library’s archivists will also be laid off.

  • Punit Goenka picks solid over spectacular to steer Zeel ship in turbulent times

    Punit Goenka picks solid over spectacular to steer Zeel ship in turbulent times

    MUMBAI: 31 July was an extremely busy day for Zee Entertainment Enterprises Ltd (ZEEL) managing director and CEO Punit Goenka. Conference calls with investment analysts followed by video interviews with various business news channels late into the evening. Hardball questions were asked, he parried them with ease. Congratulations poured in and Punit responded to them all.

    This was a confident Punit. Not jubilant, but very businesslike. He sounded like a CEO in charge of his company, in control of its future. It appeared like he had finally emerged out of the shadows of his father the highly accomplished Subhash Chandra.

    By the end of it all, Punit, as he is known to all of us, understandably sounded tired. But it was a “good” fatigue.

    As committed, he had delivered on his promise to make an announcement before the end of July 2019 about the Essel Group promoter family finding an investor to help them free equity which had been pledged with mutual funds, NBFCs and banks to raise debt to finance their expansion into newer areas.

    US-based Invesco Oppenheimer’s – the investor’s  – offer was at Rs 400 per share and it had been holding on to 7.11 per cent of Zeel’s equity since 2002. And the fact that it took up another 11 per cent of the Indian owned global media group for Rs 4244 crore emphasises the confidence it has in the medium to long-term future of Zee as well as the faith it reposes in the ability of Subhash Chandra and his sons Punit and Amit Goenka and the teams within the group to ride over the current storm that it is facing. It has not demanded a board seat and has asked for no changes in the functioning, giving the family total management oversight.

    Some industry professionals snickered in private saying the deal is a damp squib. For one, the Zeel team failed in its efforts to get a strategic investor who would bring in global and technical expertise like Punit had proclaimed a few months ago. Second, the pricing of Rs 400 places the valuation of Zeel at about Rs 40,000 crore, which is much lower than what many expected.

    But Punit believes he has got the best deal in place for Zeel. Said he on the investment analysts’ call: “We had a strategic investor’s proposal on the table and the financial investor’s. We opted for the financial investor’s as the strategic investor would have taken time which would have gone beyond the deadline given to our lenders.”

    His view is that the valuation is something that can go only up, and even at Rs 400, it is at a premium of the Zee low for 2019.

    “The floor price has been laid now,” said Punit. “The next deal will happen much beyond this if it is required.”

    He, however, is sanguine that it will not be needed, as the Essel Group will be lopping off and hawking its non-media assets to cover the gap of Rs 6,800 odd crore.

    Punit, though, did not rule out the promoters offering further equity or partnering with other strategic investors in the media and entertainment space going forward.

    Other analysts point out pricing aside, the Invesco Oppenheimer deal is a coup for Punit Goenka. For one, it has allowed the management to be in the Indian promoters' hands. And they have been running a tight ship, with EBITDA margins being really healthy for several quarters.

    The second benefit is that acquisition by a strategic investor like Sony or Comcast or Reliance could have led to concentration of power in the hands of one of these three. As a consequence, a reduction in competitive forces in the media and entertainment – more specifically broadcasting – space.

    Having cleared the first hurdle of proving the doomsayers wrong, Punit now has to complete the Invesco Oppenheimer transaction, which he says will happen by end-August. (read: Zeel’s Punit Goenka on Oppenheimer divestment)

    But the bigger challenge is finding the rest of the Rs 6,756 crore which he has to pay to the Essel Group lenders without divesting any more equity in the media mother ship.

  • Star Maa becomes no.3 GEC

    Star Maa becomes no.3 GEC

    MUMBAI: Star Maa’s recent launch of the 3rd edition of the show ‘Bigg Boss’ has propelled the growth of its viewership in the week 30 of BARC India’s Ratings. Bigg Boss Season 3 has opened with ratings of 17.9 TVR making it bigger than all previous seasons of the show. With the launch of Bigg Boss Season 3 in Telugu, Star Maa clocked 1108 GRPs, making it even stronger than before with a whopping ~75% lead over the next player in the market.

    Star Maa is way ahead of the other channels and the Star Maa network with its portfolio of channels is the biggest Telugu network with a humongous 30% market share. Star Maa today has 7 out of the top 10 shows of the market. At an all India level also Star Maa is among the top 3 channel brands of 2019. This lead has been consolidated on the back of a comprehensive lead across most dayparts and slots. This success is the result of multiple shows being deeply loved and appreciated by the Telugu viewers. Adopting to changing trends and tastes of audiences, every show has ensured audiences stay tuned to Star Maa.

    On the Bigg Boss Season 3 launch ratings host Actor Nagarjuna Said “Thank you all for the love shown to me and the show. Bigg Boss housemates undergo some life altering experiences and I am excited to be part of it. I have always tried new things and am enjoying this experience too. Looking forward to getting even closer to viewers and housemates in the coming weeks. "

    Star Maa Network Business Head Alok Jain said, “We are thankful to our viewers for all the love and affection they have showed us. We are also extremely thankful to Nagarjuna and all our partners who have worked over the last 6 months to make this mammoth project such a whopping success. We constantly push ourselves to bring unique storytelling that reflects contemporary lives of people. Our fiction characters are progressive and inspiring. Be it a girl who strives against color discrimination or an unwanted girl child who is born mute but communicates with passion and wins hearts. Each story and character are crafted differently hoping to touch a chord with our viewers. Star Maa is committed to focus on being the most loved and entertaining Telugu GEC channel.”

  • ‘Kahat Hanuman…Jai Shri Ram’ coming soon only on &TV

    ‘Kahat Hanuman…Jai Shri Ram’ coming soon only on &TV

    MUMBAI: Mythological shows in India have always managed to captivate an audience with numerous unheard and fascinating tales of the great Lords. Despite the tales being told and retold to a vast and varied audience, these ancient epics have always managed to give a stiff competition to any other form of fictional dramas.

    After enjoying a successful run of mythological shows like Jai Santoshi Maa and Paramavatar Shri Krishna, &TV is all set to present the captivating tale of Lord Hanuman with Kahat Hanuman…Jai Shri Ram.

    An incarnation of the powerful and supreme Lord Shiva, Lord Hanuman was created as the most powerful being on earth with a certain purpose and potential. Defining this purpose while giving viewers a glimpse of the tale between Lord Shiva and the invincible evil Ravana, the show will narrate the story of Lord Hanuman’s origin. It is set to take the viewers on an interesting mythological journey of how Bal Hanuman eventually emerges as the greatest devotee of Lord Ram and manages to bring a successful end to Ravana’s reign of terror.

    Talking about bringing this new narrative, Vishnu Shankar, Business Head, &TV said, “Mythology as a genre is deeply rooted in our rich culture and traditions. Despite the evolution of several genres, these age-old stories entrenched in Indian culture, have always managed to attract mass appeal. &TV’s new show, ‘Kahat Hanuman…Jai Shri Ram’ represents the story of spiritual devotion of Hanuman – his faith and devotion to Lord Shri Ram. Hanuman is the epitome of Bhakti and serves as an inspiration for all of us."

  • Colors’ new epic Ram Siya Ke Luv Kush to premier on 5 August at 8.30 pm

    Colors’ new epic Ram Siya Ke Luv Kush to premier on 5 August at 8.30 pm

    Ayodhya: Ramayan, the revered classic, forms the bedrock of Hindu mythology and its teachings are deeply engraved in our cultural history. A tale of Lord Ram and his beloved wife Goddess Sita is rendered eternal and it encourages us to follow the path of righteousness. Narrating the virtues of Ram-Sita through the lens of their sons Luv-Kush in an artistic rendition of the sacred scripture is COLORS’ magnum opus Ram Siya Ke Luv Kush powered by India Gate Basmati Rice. The show will unearth Luv and Kush’s quest to know their father’s identity which leads them to discover the power of his name and reunite their parents for the greater good. Produced by Swastik Productions, the show will premiere on 5th August 2019 and air every Monday to Friday at 8.30 pm on COLORS.

    The show dates to the magical era when Lord Ram-Sita return to Ayodhya after their fourteen years of exile while Sita is an expectant mother. Celebrations galore and they are welcomed amidst festivities, but the happiness is short-lived. Lord Ram is met with a wave of despair as he finds Ayodhya vasisquestioning Sita's morals and purity post her return from Lanka. While this baffles Ram, Sita senses his dilemma. She decides to leave Ayodhya to uphold her and every woman’s honor and Ram as a husband supports her decision. Beneath the quiet and submissive exterior of Sita, lies immeasurable power. She endures the courage to live by herself and gives birth to Luv and Kush. While they are oblivious to their lineage, they imbibe the same wisdom and compassion as their father Ram. They face adversities and overcome them like true warriors which leads them to reunite Ram-Sita, thus completing the eternal epic, Ramayan.

    Commenting on the launch of the show, Nina Elavia Jaipuria, Head, Hindi Mass Entertainment & Kids TV Network, Viacom18, said, “Indian audience has a penchant for mythological shows as its appeal cuts across all age groups. The shows provide a window to witness the glorious tales through nuanced storytelling and larger than life depictions. Ram Siya Ke Luv Kush will showcase Ramayan narrated from Luv-Kush’s standpoint and how they strived to bring their parents together. It will serve as a perfect opportunity for people to reconnect with our culture and relive the timeless tales. The show is one of our biggest launches this year and we are happy to partner with Swastik Productions once again. They are known to breathe life into many mytho-centric stories including our previous offerings Karmphal Data Shani and Mahakali. We are looking at strengthening the 8.30pm timeslot with this show and thus offering variety to our viewers.”

    Speaking about the sponsorship, Mr. Ayush Gupta, Business Head, KRBLsaid, “Indian culture and traditions are largely spun from our scriptures. These values are what makes us humble, humane, brave and intellectually sound at the same time. India Gate Basmati Rice, the largest selling basmati rice brand in India, understands these emotional threads which are woven into the social fabric of Indian society. We are proud to be associated with Ram Siya Ke Luv Kush as it puts impetus and further strengthens our belief in traditional Indian sentiments. We wish the channel and production team all the best for the success of this epic series.”

    Speaking about the concept of the show, Manisha Sharma, Chief Content Officer, Hindi Mass Entertainment, Viacom18, said, "Ramayan, the eternally universal unifier, is an embodiment of our strong culture, which brings alive the virtues of faith, love, bravery, brotherhood, and sacrifice. All these factors hold significant relevance in today’s day and age and the lessons from the epic have been passed on to from generations over, through its traditional stories. Built on this key insight, Ram Siya Ke Luv Kush will highlight the part of Ramayan which puts the spotlight on Lord Ram and Goddess Sita’s sons Luv-Kush, and how they became instrumental in completing Ramayan. The show scales up in terms of detailing in every aspect including storytelling, production value, special effects, and we are hopeful that our vision turns out to be one of the biggest mythological entertainers for our viewers.”

    Producer Siddharth Kumar Tewary, Swastik Productionscommented, “This is the biggest and the most revered story of our country. My vision is to take our nation back to its roots. It will not just entertain the viewers but will also educate us about our values and our culture. We have made the story relevant to today's youth as I believe it's very important for them to understand our core. The visualization and the presentation is of the highest standards on Indian television and I am hoping that the entire family can watch this series together to understand the story of our roots, the story of our nation.”

    Essaying the character of Lord Ram, Himanshu Soni said,“I have grown up listening to mythological tales and have always been mesmerized by its greatness. This is my second time of playing a godly character and I feel fortunate to be able to recreate the magic through my roles. Playing Lord Ram has been a life-changing experience as it’s tough to emulate his powerful demeanor and strength on screen. Doing justice to it was extremely critical to me as an actor. I am looking forward to associating with COLORS and I hope that the viewers appreciate our efforts.”

    Portraying Goddess Sita’s character, Shivya Pathania, said, “My entire family worships Lord Ram and Sita and they were extremely happy when I broke the news of playing Sita in the show. They felt that their dream has come true through me.  I have played various mythological characters in the past but playing Goddess Sita was a different experience altogether. A lot of responsibility lies on your shoulder when you essay a divine character and I wish to live up to everyone’s expectations.”

    Ram Siya Ke Luv Kush is backed by high production value and the costumes, jewelry, and sets have been designed in a way that it complements the grandeur of the era.  Shiba Priya Sen from Kolkata has added elements from Kumartuli to Ram and Sita’s apparels and accessories. From special cuts of Banarasi saree, georgettes, and silk to dried seed and flowers of Santi Niketan, their look boasts of richness. Udit Narayan has sung the title track while the Halidpur brothers, Sangeet and Siddharth have composed it. Ace choreographer Rekha Chinni Prakash has aesthetically choreographed the opening dance sequence for the show. 

    The channel has devised an elaborate marketing and digital plan to reach out to the consumers.  A key on ground highlight is COLORS Bhakti Ki Yatra, one of its kind concepts, manifested in a form of a holy structure on wheels that hosts Hologram technology to showcase Ramayana’s chapters and give Sakshat Darshan of Ram, Siya, Luv, and Kush to the devotees. A jaw-dropping dance performance by a large troupe and grand Ashwamegh structure are the paraphernalia of this Yatra. The audiences will get a chance to witness this breakthrough consumer connect drive across key market areas, colleges, townships in Uttar Pradesh. The initiative will be amplified on local radio stations, cable, digital through contests and meet and greet program. In a first of its kind partnership, the channel is set to associate with Google to enhance the experience for the audience on the digital front. It will enable them to engage with the actors through Google Assistance and share show gifs. Additionally, the channel will be creating a Ram Setu on Twitter by having a slew of influencers engaging through a single tweet and creating an illusion of a bridge on social media. 

    The show also features a stellar cast including Harshit Kabra as Luv, Krish Chauhan as Kush, Zuber Ali as Hanuman and Naavi Bhangu as Lakshman amongst many others.

  • ZEEL’s Punit Goenka on Oppenheimer transaction, strategic investor, additional stake sale

    ZEEL’s Punit Goenka on Oppenheimer transaction, strategic investor, additional stake sale

    MUMBAI: Zee Entertainment Enterprises Ltd (ZEEL) on Wednesday announced what much of the media and entertainment as well as the investor ecosystem had been waiting to hear for a while. ZEEL reached an agreement with US-based Invesco Oppenheimer Developing Markets Fund for 11 per cent (around Rs 400 per share) of the promoter stake for Rs 4,224 crore. This essentially means the fund will intensify its shareholding to 18.7 per cent in the company.

    This is the second round of good news for the Essel Group promoter family after acing Q1 of FY20 with a 40 per cent jump in its profit at Rs 512 crore on a revenue of Rs 1,789 crore, capping off a 14.5 per cent year-on-year growth.

    The infusion of Rs 4,224 crore will give some relief to the group as it races to meet the 30 September deadline to pay off loans to the tune of Rs 11,000 crore to mutual funds, NBFCs and banks.  

    ZEEL MD & CEO Punit Goenka expects the Invesco Oppenheimer transaction to get completed by 31 August. He added that the deal will be done through an escrow mechanism wherein “the lenders will have to pool their shares and once the escrow agent confirms that the requisite number of shares have been placed, they will tell Oppenheimer to wire the funds and therefore on that day, the transfer of both will happen.”

    Goenka is confident that the promoters will be able to raise the remainder Rs 6,800-odd crore it needs to repay lenders by selling off some of its non-media assets in which it has invested like roads, infrastructure and solar energy. He was speaking to investment analysts late in the evening of 31 July.

    Invesco Oppenheimer, which until now owned 7.74 percent stake in ZEEL, is a pure equity shareholder and won’t have a seat on the board, he pointed out.

    “There’s no such agreement but I am pretty confident once investor like Invesco Oppenheimer is buying 11 per cent stake at certain price that validates our value. Therefore anybody else who may look at ZEE can’t really question it and that price should be very easily selling through,” said Goenka responding to whether ZEEL would sell rest of the stake below Rs 400 per share.

    Notably, Goenka did not rule out selling more promoter stake in the company. He also added that the Essel Group has zeroed in on buyers for some of its non-media assets. However, should the sale of these assets disrupt the repayment timelines, then the company will “step it up with the Zee stake sale,” Goenka revealed.

    ZEEL opted against a deal with a strategic partner for it would have taken longer to close the transaction thereby delaying the repayment process. 

    “Strategic investor is off the table for now,” Goenka remarked.

    He, however, briefly touched upon the possibility of ZEEL partnering some of its other media assets with like-minded strategic partners.

    Having consistently delivered profits and maintained a good growth trajectory, ZEEL’s prospect of finding a financial investor or strategic partner was doubted by few. This was despite mutual funds having witnessed their investments in the group turn illiquid of late.

    The sentiment was echoed by Invesco-Oppenheimer Developing Markets Fund portfolio manager Justin Leverenz who described the transaction as “highly compelling” for investors in the fund due to the “sound fundamentals of Zee.”

    The latest development is bound to cheer investors and lenders like mutual funds and insurance companies that had lent considerably to ZEEL’s promoters against collateral.

    “After this entire episode, promoters will be left with enough stake in ZEE for them to get motivated and excited to continue running the company with the legacy it has done so far,” Goenka remarked.

    With the ZEEL promoters now set to repay the debt to lenders and investors from the proceeds of the stake sale, some of the debt funds that have been under the pump will now also be able to fulfill commitments to their investors.

    It has taken ZEEL extended deadlines to get to this point. In a sense, the entire process from taking the tough call to sell promoter stake to striking the right deal amidst back-to-the-wall negotiations has been synonymous with what founder and chairman Subhash Chandra has embodied all his life – living to fight another day.