ITV

Tag: Merger

  • Zeel-Invesco tussle: We have never resorted to any hostile transactions, says Reliance

    Zeel-Invesco tussle: We have never resorted to any hostile transactions, says Reliance

    Mumbai: Reliance Industries Ltd (RIL) has released a statement after being embroiled in the Zeel-Invesco dispute on Wednesday. The company said that it has never resorted to “hostile transactions” and noted that reports in the media are not accurate.

    Reliance Industries became entangled in the tussle between Zee Entertainment Enterprises Ltd (Zeel), and their investor Invesco Developing Markets Fund, after the latter revealed that Reliance was the “Strategic Group” that was looking to merge its media business with Zeel earlier this year in February-March.  

    As per the proposal, 40 per cent of the merged entity would belong to existing shareholders while 60 per cent would be controlled by RIL. Furthermore, the promoter family would retain its existing 3.99 per cent stake in the merged entity.

    According to the statement, Invesco assisted Reliance in arranging discussions directly between their representatives and Punit Goenka who is a member of the founding family and managing director of Zeel.

    Reliance had made a broad proposal for the merger of their media properties with Zeel. “The valuations of Zee and our media properties were arrived at based on the same parameters. The proposal sought to harness the strengths of all the merging entities and would have helped to create substantial value for all, including shareholders of Zee,” the company said.

    Reliance confirmed that the proposal included the continuation of managing director Punit Goenka and the issue of ESOPs to management including Goenka. “Reliance always endeavours to continue with the existing management of the investee companies and reward them for their performance,” it said.

    The fallout of the deal was attributed to differences between Goenka and Invesco with respect to a requirement of the founding family for increasing their stake by subscribing to preferential warrants. Invesco held the view that the founders could always increase their stake through market purchases.

    The Zeel-Invesco tussle began when the media company’s two top investors Invesco Developing Markets Fund and OFI Global China Fund LLC who combined own 18 per cent stake in the company had sent a requisition notice to the company on 11 September to call an EGM even after two weeks, the investors moved to NCLT, citing provisions of Company Law, according to which the company is bound to call for an EGM within a specific number of days if stakeholder demanding it owns more than 10 per cent of the company.

    The investors had also sought the removal of long-standing directors and close associates of the Chandra family from the board. The two independent directors Ashok Kurien and Manish Chokhani have already submitted their resignations. 

    The investors moved to have six nominees appointed to the board of Zeel, which included Surendra Singh Sirohi, Naina Krishna Murthy, Rohan Dhamija, Aruna Sharma, Srinivasa Rao Addepali, and Gaurav Mehta as independent directors of the board for a term up to five consecutive years. The notice was received by Zeel on 12 September, and it informed the stock exchanges on 13 September, adding that the appointments are subject to approval by the ministry of information and broadcasting (I&B).

    Zeel refused to conduct the EGM citing ‘shareholders interest,’ and moved to Bombay high court on 2 October seeking to declare the requisition notice as “illegal and invalid.”

    On 22 September, Zeel and Sony Pictures Networks India announced that they have signed a non-binding term sheet to merge the media assets of both companies. However, Invesco has raised concerns regarding aspects of the deal that allow the promoter family to increase their stake from 3.99 per cent to 20 per cent and has demanded that additional details of the proposed merger be furnished.

  • Zee-Sony merger no more than camouflage to distract from primary issue: Invesco

    Zee-Sony merger no more than camouflage to distract from primary issue: Invesco

    Mumbai: Invesco Developing Markets Fund has written a biting open letter addressed to the shareholders of Zee Entertainment Enterprises Ltd (Zeel). The investor has raised concerns regarding the “repeated governance failures” and “underperformance” of the company and has claimed that the timing of the announcement of an alignment with Sony Pictures Networks India (SPNI) is a camouflage to distract from the primary issue before the company.

    The letter is signed by Invesco’s chief investment officer Justin M Leverenz.

    It states that the investor has been in talks with Zeel’s management for over two years and has shared suggestions on matters including disclosures, capital allocation, ring-fencing, and distancing Zeel from the long shadow of another family “group companies.” However, the outcome of these discussions has “yielded nothing other than platitudes such as Zee 4.0.”

    The investor observed that Zeel’s stock price increased by 40 per cent after it called for an extraordinary general meeting of shareholders. “The purpose of this action – unique in the almost 25-year history of our fund – is to enable all shareholders to vote on the proposed removal of the remaining non-independent director and to add six additional independent directors to the board,” it said.

    The increase in stock price after our intentions became public demonstrates the frustration of Zeel’s long-suffering investors and the appetite for change, claimed Invesco. Invesco pointed out that the Indian stock market indices have more than doubled in the preceding five years, whereas the stock of Zeel had more than halved in the same period.

    Invesco highlighted the urgent need for independent perspectives on Zeel’s board citing the company’s governance failures and prolonged underperformance. The EGM would hold the board and management of Zeel accountable for the past performance of the company, it said.

    According to the investor, the lack of governance oversight by Zeel’s current board was identified in the Securities and Exchange Board of India (SEBI) letter dated 17 June. The letter highlighted several aspects pertaining to Zeel including “large outstanding dues from related parties,” “letters of comfort issued by directors of the company without informing the board,” and based these and other observations concluded that the “actions of the company are not in the best interest of shareholders.”

    Invesco also expressed its concerns over Zeel’s proposed alignment with Sony, which it noted, “favours the founding family at the expense of shareholders.”

    It said, “This non-binding agreement gifts a two per cent equity stake to the promoters of Zee in the guise of a ‘non-compete,’ even though the current managing director and chief executive officer of Zee will continue to run the proposed merged entity for the next five years. This is dilutive to all other shareholders, which we consider unfair. At the very least, we would expect such largess to be contingent on the MD/CEO leaving said position (thus raising the scenario of ‘non-compete’) or be structured in the form of time vesting and performance-linked ESOPs, which we as shareholders welcome as a transparent way to reward performance and leadership.”

    It added, “The Zee-Sony announcement casually mentions that the Zee promoter family will have the right to raise their stake from four per cent to 20 per cent, without specifying any manner in which this meaningful change will actually happen. Will this change the majority control of Sony in the merged entity? Will it involve open market purchases, warrants, or some other financial instrument? If the latter, will say instruments/warrants to the promoter family be priced so as to advantage them at the cost of ordinary shareholders? This lack of clarity around key aspects of the Zee-Sony announcement should concern all shareholders.”

    Invesco stated that they would view the transaction in a constructive spirit “if and when” additional information regarding the proposed merger is made available.

    Zeel two top investors Invesco and OFI Global China Fund LLC who combined own 18 per cent stake in the company had sent a requisition notice to Zeel on 11 September to call an EGM even after two weeks, the investors moved to NCLT, citing provisions of Company Law, according to which the company is bound to call for an EGM within a specific number of days if stakeholder demanding it owns more than 10 per cent of the company.

    The investors had also sought the removal of long-standing directors and close associates of the Chandra family from the board. The two independent directors Ashok Kurien and Manish Chokhani have already submitted their resignations.

    The investors moved to have six nominees appointed to the board of Zeel, which included Surendra Singh Sirohi, Naina Krishna Murthy, Rohan Dhamija, Aruna Sharma, Srinivasa Rao Addepali, and Gaurav Mehta as independent directors of the board for a term up to five consecutive years. The notice was received by Zeel on 12 September, and it informed the stock exchanges on 13 September, adding that the appointments are subject to approval by the ministry of information and broadcasting (I&B).

    Zeel refused to conduct the EGM citing “shareholders interest,” and moved to Bombay high court on 2 October seeking to declare the requisition notice as “illegal and invalid.”

    “These actions, which ostensibly are being taken in the ‘best interests of all shareholders,’ as Zee’s communications claim, are in fact indicative of a management team that places self-interest over the interest of the institution it leads, its employees and all other shareholders, as well as a Board whose permissive culture has enabled this behaviour and its consequences,” said Invesco.

    Invesco stated that it will exercise its right to conduct an EGM and if the proposal moved at the meeting finds favour from the shareholders so as to carry the vote, then six new independent directors will join the board of Zeel and the sitting managing director and chief executive officer of the company Punit Goenka will be removed from the board.

    The newly constituted board will deliberate and determine the future leadership of the company, including the appointment of an interim CEO, while the formal search for a CEO within the management of the company or from within the Indian media industry is conducted.

    “We wish to clarify the issues on which we will not compromise in connection with any transaction, and where we will continue to make our voice and our vote heard. We will firmly oppose any strategic deal structure that unfairly rewards select shareholders, such as the promoter family, at the expense of ordinary shareholders,” it concluded.

  • The whys and wherefores of the Zeel-SPNI merger proposal

    The whys and wherefores of the Zeel-SPNI merger proposal

    Mumbai: After days of conjectures fueled by boardroom battles, Zee Entertainment Enterprises Ltd (Zeel) pulled off a tour de force early on Wednesday announcing the company’s plans for a mega-merger with arch-rival Sony Pictures Networks India (SPNI). With their combined linear networks, digital assets, production operations, and programme libraries, the two companies are set to create one of India’s largest media and entertainment entities in terms of market share. It will not only rival market leader Disney Star India, but it could well pip the former at the post in revenues when it does go through.

    The news was not completely unexpected; talks of a merger between the two networks had been in the news intermittently for almost two years now. They had flirted with each other and other suitors intermittently. According to various media reports, both SPNI and Zeel had been on the lookout for a partner that could bring in mutual synergies, while minimising clashes, to fend off competition amid growing consolidation in the media and entertainment industry.  Each one of them had also explored a merger with the Mukesh Ambani-owned Viacom18 to challenge the Disney-Star collaboration that has been dominating the content market, however, without success. RIL owns a majority stake in Viacom18, which is a joint venture between TV18 Broadcast Ltd and US-based ViacomCBS Inc. With the current merger, the companies have seemed to found what each of them was looking for to turbocharge their future growth.

    If Zeel is backed by its core strength in content creation in both mainline Hindi and regional languages, SPNI brings along its well-consolidated entertainment and sports genre creating a potent combination. SPNI also leads in the English/premium factual entertainment genre, but in return, it will get an opportunity to leverage Zeel’s pervasive reach built over decades.

    Despite recent challenges, the network has come a long way since its launch three decades ago. Zeel continues to maintain its hold in the HSM with its FTA channel Zee Anmol being the steady top grosser in the UP/Uttarakhand market, and down south with regional GECs Zee Kannada or Telugu. The merger could also help SPNI to adopt a well-positioned strategy that has so far oscillated between targeting mass and metro audiences.  It could also bolster their growing digital businesses, bringing together the two streaming platforms-  Zee5 and SonyLIV. 

    The reality is that both Zeel and SPNI are no strangers when it comes to striking a deal. One can hark back to a time half a decade ago when the Subhash Chandra-run company had hawked off its Ten Sports channel and related sports business to SPNI – a deal which has served the latter well.

    With the latest merger announcement, Zeel has also pulled off a coup of sorts in favour of its MD and CEO Punit Goenka who will now lead the combined media entity. The announcement is crucial, as it boosts his position at a time when two of Zeel’s top investors – had called for his ouster, making corporate governance allegations against him and some Zeel board members.

    Over the last year, Goenka has focused on transforming the company into a new ‘Zee 4.0 vision’ – led by a revamped programming line-up of its linear channel portfolio in the key markets, and the launch of new channels. In its recent annual general meeting (AGM), Goenka had elaborated how Zeel’s future roadmap for the next three years will be led by digital. “We are still in investment mode for our digital business and our film business. We enjoyed leadership in several of the markets that we operate in,” he told shareholders last week.

    Zeel’s linear business has managed to retain its profitability, but its flagship channel Zee TV has been looking to regain its standing in the non-fiction content where it used to be a strong player until a few years back, with popular properties like Sa Re Ga Ma and DID.

    Goenka also told shareholders about Zeel’s plans to become the leading studio in films across six languages and increases its market share in the music category. SPNI, on its part, has recently stepped up its content creation capability in-house through its TV and OTT show and film production units. Zeel and SPNI’s union on this front will prove beneficial in many ways.

    The most important benefit that the merger brings to the table is even higher economies of scale. Zeel has over the years built its reputation as an excellent cost-efficient media company, even as SPNI is one of the more profitably run broadcasters. Their coming together is likely to bring in even more cost-efficiencies because of the scale that their marriage will usher in, enabling tougher negotiating power with suppliers and with clients. Additionally, internal cost savings will also be generated as the merged entity right sizes itself in terms of manpower, talent, and functions.

    The merger announced on Wednesday is subject to regulatory approvals, but once it goes through, it will result in SPNI holding a majority of 52.93 per cent with Zeel and its shareholders having 47.01 per cent of the new entity. But, the promoter family will remain free to increase its holding from four per cent to 20 per cent over time. SPNI will hold the majority share in the new media entity and its shareholders will pump in growth capital of $1.575 billion to strengthen the company’s digital platforms across technology and content, ability to bid for broadcasting rights in the fast-growing sports landscape and pursue other growth opportunities.

    The combined company’s board of directors would include directors nominated by the Sony Group and result in it having the right to nominate the majority of the members. 

  • No such transaction being undertaken, Zeel refutes reports of merger

    New Delhi: Putting speculation to rest, the entertainment giant Zee Entertainment Enterprises Ltd (Zeel) on Monday said, there are no merger talks underway with Viacom18, as reported by a leading English daily.

    “We herewith confirm that there is no such transaction being undertaken and the matter is speculative in nature. This is for your information and records,” Subhash Chandra’s Essel group owned media company posted on the Bombay Stock Exchange (BSE) on Monday.

    The statement comes in the wake of a report published by Livemint, about a potential merger between Viacom18 Media Pvt Ltd and Zee Entertainment Enterprises Ltd (Zeel) through a share swap deal.

    According to the report, the merger was proposed to be done through a share swap deal. “The talks started a few weeks ago, and the deal is unlikely to involve any cash transaction,” reported the publication.

    Founded by Essel Group’s Subhash Chandra, Zee Entertainment Enterprises Ltd is majority-owned by foreign institutional investors – Investco Oppenheimer Developing Markets Fund and Ofi Global Fund China LLC. The company is run by Chandra’s son and CEO & managing director Punit Goenka.

    Earlier in the day, Zeel spokesperson had also refused to confirm or deny the speculative news item. Said a Zeel corporate official:“The company does not comment on speculation and rumours.” 

  • Viacom18 and Zeel eyeing a merger?

    New Delhi: It’s the season for mergers. Following in the footsteps of  big media mergers globally, two entertainment giants back home- Viacom18 Media Pvt Ltd and Zee Entertainment Enterprises Ltd (Zeel) are now reportedly looking to join hands to create a large firm, according to an unconfirmed news item in Mint on Monday.

    If  the reports are to be believed, the owner of the GEC Colors, Viacom18, and Subhash Chandra’s Zeel have initiated talks of a potential merger. It is too early to say, but, if the deal fructifies, the combined entity will end up owning and managing the largest number of TV channels in India, and probably globally. The combined media firm’s interest will span across broadcast, OTT, live entertainment, and movie production.

    However, it is not the first time that such talks of coagulating companies in the television business have floated. The buzz has been proven to be unfounded in the past.

    Last year,  similar talks of a  merger  between Viacom18 and Sony Pictures Network fell apart, after the Mukesh Ambani-led Reliance Industries Ltd pushed for a majority stake in the combined entity as well. RIL owns a majority stake in Viacom18, which is a joint venture between TV18 Broadcast Ltd and US-based ViacomCBS Inc. While Network18 owns a 51 per cent stake in Viacom 18, Viacom holds the remaining 49 per cent.

    Zee Entertainment Enterprises Ltd was founded by Essel Group’s Subhash Chandra and is majority-owned by foreign institutional investors – Investco Oppenheimer Developing Markets Fund and Ofi Global Fund China LLC. The company is run by Chandra’s son and CEO & managing director Punit Goenka.

    A Zeel spokesperson refused to confirm or deny the speculative news item. Said a Zeel corporate official:  “The company does not comment on speculation and rumours.” 

  • Warner Media-Discovery merged outfit named Warner Bros.Discovery

    Warner Media-Discovery merged outfit named Warner Bros.Discovery

    MUMBAI: When two well-known media firms fuse, there’s always a big debate about what the new organisation should be called? But the folks at Discovery and AT&T have kept their life simple: they have decided to call the proposed global entertainment outfit being born out of the merger between Hollywood entertainment powerhouse Warner Bros and  the firm founded by John Hendricks as ‘Warner Bros.Discovery.’

    A press release issued by Discovery stated that “The Warner Bros. Discovery name will honor, celebrate and elevate the world’s most-storied creative studio in the world with the high quality, global nonfiction storytelling heritage of Discovery.”

    David Zaslav, President and CEO of Discovery and the future CEO of the proposed Warner Bros. Discovery combined company, unveiled the new name to WarnerMedia employees from the Warner Bros. studio lot in Burbank, CA, where he said:

    “Warner Bros. Discovery will aspire to be the most innovative, exciting and fun place to tell stories in the world – that is what the company will be about.  We love the new company’s name because it represents the combination of Warner Bros.’ fabled hundred year legacy of creative, authentic storytelling and taking bold risks to bring the most amazing stories to life, with Discovery’s global brand that has always stood brightly for integrity, innovation and inspiration. There are so many wonderful, creative and journalistic cultures that will make up the Warner Bros. Discovery family. We believe it will be the best and most exciting place in the world to tell big, important and impactful stories across any genre – and across any platform: film, television and streaming.”

    The initial wordmark for the proposed company includes the iconic line from the Maltese Falcon, “the stuff that dreams are made of,” an additional homage to the rich legacy of Warner Bros. and the focus of what the proposed company will be about.

    In May, AT&T and Discovery reached a definitive agreement to combine WarnerMedia’s premium entertainment, sports and news assets with Discovery’s leading nonfiction and international entertainment and sports businesses to create a single company.

    Warner Bros. Discovery will bring together leadership teams, content creators, and high-quality series and film libraries in the media business, while accelerating both companies’ plans for leading direct-to-consumer (DTC) streaming services for global consumers. The new company will unite complementary and diverse content strengths with broad appeal — WarnerMedia’s robust studios and portfolio of iconic scripted entertainment, animation, news and sports with Discovery’s global leadership in unscripted and international entertainment and sports.

    The “pure play” content company will own one of the deepest libraries in the world with nearly 200,000 hours of iconic programming and will bring together over 100 of the most cherished, popular and trusted brands in the world under one global portfolio, including: HBO, Warner Bros., Discovery, DC, CNN, WB Games, Turner Sports, Cartoon Network, HGTV, Food Network, TNT, TBS, Turner Classic Movies, Wizarding World, Adult Swim, Eurosport, Magnolia, TLC, Animal Planet, ID and many more.
    Warner Bros. Discovery will be able to increase investment and capabilities in original content and programming; create more opportunity for under-represented storytellers and independent creators; serve customers with innovative video experiences and points of engagement; and propel more investment in high-quality, family-friendly nonfiction content, says the press release.

  • Discovery extends David Zaslav’s employment contract

    Discovery extends David Zaslav’s employment contract

    MUMBAI:  When you swing a deal like he has done, you probably deserve to be rewarded. Discovery president & CEO David Zaslav played a key role in getting AT&T’s WarnerMedia to align itself with the network he leads, an announcement of which was made earlier this week. Well, his labour has yielded fruit as his employment contract has been extended to run through 31 December 2027 from its previous effective date of 2023.

    Of course, we all know that the merger of the two media firms will lead to the creation of a behemoth offering WarnerMedia’s premium entertainment, sports, and news assets and Discovery’s leading nonfiction and international entertainment and sports businesses. And it was announced that Zaslav will lead the proposed new company.

    Since joining it in 2007, Zaslav has steered Discovery to new heights starting with taking it public in 2008, stream rolling it into the Fortune500 in 2014, acquiring Scripps Networks Interactive, in a transaction which closed in 2018 and ramping up its direct-to-consumer efforts under discovery+. The definitive real-life subscription streaming service launched in the US in January 2021 with more than 55,000 episodes, and internationally, continues its rollout to more than 25 markets and accounts for 15 million subs already.

    The Discovery comprises nearly 20 per cent of ad-supported pay-TV viewership in the US and nearly seven billion monthly video views, making it the No 1 pay-TV portfolio in Uncle Sam, claims a press release. And its global distribution has surpassed three billion viewers.

    Before Discovery Zaslav had a distinguished career at NBCUniversal, where he was instrumental in developing and launching CNBC and also played a role in the creation of MSNBC.

  • French groups TF1 and M6 propose merger

    French groups TF1 and M6 propose merger

    MUMBAI: Fierce competition forces alliances upon nations, people, and companies. As it is doing in the media and entertainment globally today. Close on the heels of the announcement of the merger between AT&T’s Warner Media and Discovery, reports of another fusion between two media groups in France have emerged. The two in question are TF1 and M6 (pronounced Seez) groups.

    TF1 is owned by the Bouygues group, while M6’s ownership lies with European production and TV broadcaster RTL, which is part of media giant Bertlesmann. The two will be housed in a new French company in which Bouygues would hold 30 per cent and RTL 16 per cent. The former will acquire 11 per cent equity from the latter for Euros 641 million.

    The proposal has got the go-ahead from the RTL, Bouygues, TFI, and M6 boards, but has to get over the regulatory hurdles from French authorities and is proposed to close by the end-2022. The merged company would have a 2020 pro forma revenue of €3.4bn and a current operating profit of €461M. The synergies potential (EBITDA run-rate impact) is estimated at €250M to €350M per year within three years from the closing of the transaction.

    M6 CEO Nicolas de Tavernost has been proposed as chairman & CEO of the merged entity while chairman and CEO of TF1 Gilles Pélisson will be nominated as deputy CEO of Groupe Bouygues in charge of media and development.

    A new ad-supported service, combining catch-up and live streaming and based on existing services MyTF1 and 6play, would be developed, alongside an SVoD service and a production hub for local and international content.

    What’s forcing the two to merge? Well a press release issued by RTL gives some insights.

    It says the two groups are active in a growing total video market where increasingly rich, original, and exclusive content is driving long-term audience growth. Even as linear TV remains powerful, it is undergoing a structural transformation with a strong shift towards on-demand consumption which is being led by global platforms making deep pushes in the French advertising market.

    “The combination of these two players, of the know-how of their employees and their strong brands, would allow the new group to invest more and to step up innovation. The proposed merger is critical to ensure the long-term independence of French content creation and to continue to offer diversified and premium local content to the benefit of all viewers,” said the statement.

    “The merger between Groupe TF1 and Groupe M6 is a great opportunity to create a French total video champion that will guarantee independence, quality of content, and pluralism – values that have long been shared by our two groups,” said Pélisson. “It will be an asset in promoting French culture. Groupe TF1 now approaches a new stage in its development, consistent with the strategic vision developed in the past five years.”

    “The consolidation of the French television and audio-visual markets is an absolute necessity if the French audience and the industry as a whole are to continue to play a predominant role in the face of exacerbated international competition, which is accelerating rapidly,” added de Tavernost. “The combination of the two groups’ know-how will allow for an ambitious French response. Furthermore, this proposed merger of Groupe M6 and Groupe TF1 is the only transaction offering value creation for all Groupe M6 shareholders.”

    “The audio-visual market benefits from long-term growth. In this context, Groupe Bouygues is pleased to contribute to the creation of a major French media group able to compete with the GAFANs,” highlighted Groupe Bouygues CEO Olivier Roussat. “We are pleased with this major development and partnership which confirms Groupe Bouygues’ commitment to the media since 1987. As shareholders with exclusive control over the new group, we will continue to provide it with our full support.”

    RTL CEO Thomas Rabe said the proposed merger of Groupe TF1 and Groupe M6 would be a major step in implementing the strategy to create national media champions across the European footprint. “It demonstrates how in-country consolidation creates significant value. As a strategic investor, we will be long-term industrial partners of Groupe Bouygues,” he added.

  • Does the Discovery-AT&T Warner Media merger make sense?

    Does the Discovery-AT&T Warner Media merger make sense?

    MUMBAI: In one word. Yes. At least it gives them a chance in hell to play catch up with the well-muscled and well-entrenched rivals like Netflix, Disney, Amazon Prime Video, and Apple TV in the streaming race. While Netflix announced 208 million subscribers worldwide in its latest financial meet with investors, Disney declared that it had roped in 108 million subs in just a year and a half of its existence.

    As compared to that, Discovery recently disclosed that it had managed to lasso 15 million subscribers to its streaming business, and Warner Media’s HBO Max revealed its sign-ups at 9.7 million. Combining the two – if all subs stay put – gives a total of around 24.7 million. That’s still an ant-like figure compared to the jumbo numbers of Netflix, Disney, and hey even Amazon Prime. Both continued to concentrate on linear TV, and on cable, even as others were laying it out thick on OTT services. Their coming late to the streaming party means they have to work harder to ramp up subs. By teaming up it might be a little easier, but the hard work will need to be put in.

    Netflix – when it launched – did to HBO, what HBO did to other cable TV programmers two to three decades ago. The Reed Hastings-led OTT introduced cutting-edge, well-produced and edited, hard storytelling in its series and gave subscribers something to get glued onto almost every month. At an affordable price too as compared to cable TV’s high rates in the US.

    Can HBO do a Netflix to Netflix in terms of content in the current streaming world? 

    Many think that can be done, but it requires deep pockets as well as a global vision such as that is available aplenty with the Netflix top management. As well as a strong heart to tolerate negative cash flows, take on what some may consider strangulating debt while spending tens of billions of dollars on content, churning out fresh shows o

    Fusing Warner with Discovery will definitely give the two a lot more financial ammo as well content. Both are at the top of their game when it comes to their respective genres. Warner Media has dramas, series, movies in the case of HBO, TNT, TBS, and Warner Bros and kids programming in Cartoon Network; news in CNN, and sports in Turner Sports. Discovery has gold standard factual programming, along with its live sports lineup in Eurosport, real estate shows in HGTV and lifestyle programming in TLC, and food competitions in the Food Network.

    If the merger does see the light of day, the question about who will lead the operation will need to be answered. Warner Media’s Jason Kilar has shown he has the hunger; Discovery boss David Zaslav is no chicken; he’s a mean rooster and is extremely ambitious.  Observers believe that AT&T is likely to call the shots; so Kilar will get a shoo-in as head, while Zaslav will get a very rich golden handshake. Others however point out that the latter has the confidence of media baron John Malone who  controls about 30 per cent of Discovery’s equity and it’s quite likely that his word will carry weight.  This means Zaslav and Kilar might both be accommodated in the new organization.

    Of course, the merger will mean the joint entity  will boast of a neat bundle of offerings for viewers – covering everything from sports to drama to factual to kids to movies to reality. Scale is crucial in streaming service offerings, and that can be achieved by offering the Discovery Warner service at an extremely appealing price, in keeping with what rivals are charging. Discovery Plus has a price tag of $6.99 while HBO Max is available at $15. This is why the latter has remained as a niche offering attracting a thin sliver of viewers as compared to Netflix and Disney.

    In the Indian context, both Discovery and Warner Media, have kind of been left behind in the broadcast sweepstakes as compared to the mainline TV broadcasters and streamers. Both have kids channels, while HBO and WB channels have been wound up in the country. Discovery has its international slate of channels while it also has localised its factual programming. Hence, a merger within India would definitely bring in economies.

    Clearly, all that is in the future. Right now the two companies’ boards and management have to decide whether they are going ahead or not. You can’t forget that there was strong talk that Comcast and AT&T were conversing  for a deal between NBC Universal and Warner Media. But that kind of stalled and did not move ahead. Now, Discovery looks to have beaten NBC Universal to the punch. The days ahead will tell us if it results in a knockout or not.

  • The Entertainment Factory merges with Sai Mehar Media

    The Entertainment Factory merges with Sai Mehar Media

    MUMBAI: Large format event producer The Entertainment Foundation (TEF) has announced a merger with Dada Saheb Phalke Film Foundation awardee and Sai Mehar Media founder Rajiee M Shinde.

    TEF has various intellectual properties in the live entertainment and special events space, with a special focus on creating live stand-up comedy and music concepts. The company has produced and managed several large format events, live concerts, live stand-up comedy and mega productions.

    Shinde holds an extensive experience of more than 20 years within the entertainment spectrum and has served as ex-CEO of Showbox, co-founder of PTC Network and business head ETC Punjabi of Zee Group. Over the last two decades, she has been instrumental in launching new channels, designing new IPs like Punjabi music awards, Punjabi film awards, reality shows, talent hunts, live events within India and abroad. She has also produced two chart-busting Punjabi films –Disco Singh and Zorawar featuring Diljit Dosanjh and Yo Yo Honey Singh.

    Presently, her company Sai Meher Media is into releasing and distributing Hindi, Punjabi and Haryanvi songs, managing artists, providing celebrity shout outs and endorsements and syndicating content for OTT platforms and satellite channels.

    TEF, along with Shinde, plans to introduce new IPs and multi-starrer events like music awards (Hindi, Punjabi and other Indian languages), Indian comedy awards (Hindi & Punjabi), music festivals, and theme based properties in the coming months.

    The Entertainment Factory founder Mubin Tisekar said, “It is an honour to be working with someone of Rajiee’s stature and credit. Her experience and brilliance are sure to bring us success in our endeavour together. We plan to create more opportunities for the upcoming talent and show appreciation towards those that have shown trust in TEF and grown with us.”

    “It is always a pleasure to work with professionals who are passionate about their work. I love the industry I hail from, and meeting fresh talent while giving them a platform has been my passion and goal,” stated Sai Mehar Media CEO Rajiee M Shinde. “With TEF, I hope we can reach out to more artists and provide them more opportunities with interestingly curated events and properties that can  add value to the ever-blooming entertainment industry.”