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Tag: Zee-Sony merger

  • ZEEL equity shareholders give thumbs up to Sony-Zee merger

    ZEEL equity shareholders give thumbs up to Sony-Zee merger

    Mumbai : Zee Entertainment Enterprises Ltd (ZEEL) has announced that the company’s equity shareholders have approved the proposed merger of ZEEL and BangIa Entertainment Pvt. Ltd. with and into Culver Max Entertainment Pvt. Ltd . (formerly Sony Pictures Networks India Pvt. Ltd.)

    The company called the meeting of its equity shareholders on 14 October in accordance with the National Company Law Tribunal (NCLT), Mumbai Bench, order dated 24 August in order to ask for approval for the proposed merger.

    The proposed merger resolution was presented during the meeting, and 99.99 per cent of the equity shareholders of ZEEL enthusiastically endorsed it.

    The company said, “The approval marks yet another firm and positive step forward, in the overall merger completion process.” ZEEL managing director & CEO Punit Goenka will be the managing director and CEO of the amalgamated business.

    After an exclusive negotiation period in which both parties engaged in mutual due diligence was over, Sony Pictures Networks India (SPNI) and ZEEL finalised the merger in December of last year.

    The promoters (founders) of ZEEL will hold 3.99 per cent of the combined company after the transaction closes, while the remaining ZEEL shareholders will hold a 45.15 percent stake. Sony Pictures Entertainment Inc. will indirectly hold a majority of 50.86 per cent of the combined company.

    Through a subsidiary, Sony Pictures Entertainment (SPE) will pay certain Zeel promoters a non-compete fee in accordance with the transactions envisioned by a non-compete agreement. The non-compete fee will be used by these promoters (founders) to provide SPNI with initial equity funding, granting them the opportunity to buy shares in SPNI that, on a post-closing basis, would equal roughly 2.11 percent of the total shares of the combined company.

    Goenka said, “On behalf of all the Board members and management of ZEEL, I would like to thank the equity  shareholders of the company for recognising the value-accretive opportunities the proposed merger will deliver to all stakeholders. The continued trust and overwhelming  support by our equity shareholders towards the resolution of the Composite Scheme of Arrangement, further strengthen our abilities to consistently deliver higher value as we  move forward in this process.”

    The Competition Commission of India (CCI) granted ZEEL permission in a communication dated 4 October. The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have also given the company their approvals for July 2022.

    The Composite Scheme of Arrangement is still pending approval from the relevant authorities and other parties.

  • NCLT seeks shareholder nod for Zeel-Sony merger

    NCLT seeks shareholder nod for Zeel-Sony merger

    Mumbai : Phew! One more hurdle is set to get out of the way to create what could possibly end up being India’s largest media entertainment behemoth with the proposed merger of Zee Entertainment Enterprises Ltd (Zeel)  and Sony Pictures Networks India (SPNI).

    The National Company Law Tribunal’s  (NCLT’s ) Mumbai bench has directed Zeel to convene a virtual shareholder meeting  on 14 October at 4 pm  to get their nod for the merger.

    In July 2022 , Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) gave their approval. But the Competition Commission of India (CCI) has yet to give its approval as it is investigating how the fusion will affect market dominance. The NCLT direction was made last month but Zeel communicated this  to the Bombay stock exchange (BSE) only on 7 September.

    “The ]NCLT  Mumbai bench has directed in its order, that a meeting of the equity shareholders of Zeel be convened and held on Friday, 14 October   for the purpose of considering, and, if thought fit, approving the proposed merger of the company with Culver Max Entertainment Pvt Ltd  (formerly SPNI Pvt Ltd),” read Zee’s statement.

    In July 2022, Zee received approval from the BSE  and the  National Stock Exchange (NSE) for the  proposed merger. According to reports, both the firms  have been in constant contact with the competition watchdog for more than four to five months for getting its nod.

    When the merger plan was announced in September 2021, the two networks said that Sony would invest $1.575 billion and have a 52.93 Per cent  interest in the new firm and Zee the remaining 47.07 per cent.

    Last year, in December, SPNI  and ZEEL signed definitive agreements for the merger following the conclusion of an exclusive negotiation period during which both parties conducted mutual due diligence.

    When the transaction is completed Sony Pictures Entertainment Inc will indirectly control a majority of 50.86 per cent of the combined firm and the promoters (founders) of Zeel  will hold 3.99 per cent, while the remaining Zeel shareholders would hold a 45.15 per cent stake

    Under the terms of the definitive agreements, SPNI, which is an indirect subsidiary of Sony Pictures Entertainment (SPE), will have a cash balance of $1.5 billion (assuming an INR: USD exchange rate of 75:1) at closing, including through infusion by the current shareholders of SPNI and the Zeel promoters, , to enable the combined company to drive sharper content creation across platforms, strengthen its footprint in the rapidly evolving digital ecosystem, bid for media rights in the fast-growing sports landscape and pursue other growth opportunities.

    In accordance with the transactions envisioned by a non-compete agreement, SPE, through a subsidiary, will pay a non-compete fee to certain Zeel promoters.. These promoters (founders) will use the non-compete fee to inject primary equity capital into SPNI, giving them the right to purchase shares of SPNI that, on a post-closing basis, would equal about 2.11 per cent of the total shares of the combined company.

    Zeel CEO Punit Goenka  will serve as the combined company’s managing director and CEO.

    Earlier  Invesco along with OFI Global China Fund LLC, which together hold about a 17.9 per cent  stake in ZEEL, had opposed the deal.

    In March 2022, Invesco had said it would support the Zee-Sony merger deal and had decided not to pursue the call for an EGM of ZEEL to remove Goenka and two independent directors.

    Additionally, Invesco said it would support the Zee and Sony merger, adding that the “deal in its current form has great potential for Zee shareholders,” but added that Invesco retains the right to request a new EGM if the merger is not completed as currently proposed.

    With 75 TV channels and two video streaming services (ZEE5 and Sony LIV), the merged entity will become India’s second-largest entertainment network by revenue. It will also house two film studios — Zee Studios and Sony Pictures Films India and a digital content studio (Studio NXT).

  • Uptake of free DTH has come down since major broadcasters left: Punit Goenka

    Uptake of free DTH has come down since major broadcasters left: Punit Goenka

    Mumbai: The uptake of free direct-to-home services has come down since the major broadcaster networks collectively left the platform on 1 April, stated Zee Entertainment Enterprises Limited managing director and chief executive officer Punit Goenka during an earnings call.

    The company reported its fourth quarter and yearly results for the financial year ended 31 March. Goenka said, “Cord-cutting has slowed down now that GECs (general entertainment channels) have come out of the Free Dish platform. So far, the decline in subscription revenues has been because we were losing subscribers. The good thing is we’re not losing subscribers to digital but rather subscribers are migrating from pay linear to free linear TV.”

    On merger with Sony Pictures

    Goenka also shared an update on the merger process between Zee and Sony Pictures Networks India. The two companies had signed a definitive agreement in December 2021 and submitted key documents with the stock exchanges for the necessary approval. Analysts queried Goenka whether the timeline for completion of the merger would remain at eight to nine months as the company was still awaiting approval from the exchanges.

    “My speculation is that because this is a large merger there have been a significant number of queries by the stock exchanges that we have been answering. It has been two weeks or ten days since we last got any query from the exchange and I am still positive towards the eight to nine months timeline,” replied Goenka.

    Zee is expected to be one of the major contenders for the Indian Premier League (IPL) media rights auction that is set to begin on 12 June. With the merger process still underway, analysts asked Goenka whether Zee was in a position to bid for the media rights without the capital infusion of $1.57 billion (~Rs 12,000 crore) from Sony.

    “We have a healthy balance sheet and we can participate (in the IPL media rights) on our own,” said Goenka. He also noted that the TV and digital rights package being sold separately “doesn’t preclude us from bidding for either part of all of the rights packages being sold.”

    Goenka stated that the company is still evaluating its strategy concerning IPL media rights.

    Zee expects its advertising revenues to face pressure in the coming quarter due to the inflationary situation that has impacted FMCG advertisers who account for up to 53 per cent of ad spend on the network.

    The company also expects to see a short-term impact on ad revenues after pulling its GECs from the Free Dish platform. “This will be a transitional impact and we expect to recover as intended benefits accrue on the pay side of the business,” remarked Zeel chief financial officer Rohit Gupta.

    He added, “In FY23 from a quarter-on-quarter progression perspective we expect the margins to improve as we progress through the year.

    The first quarter will have the most immediate impact in terms of inflationary dynamics. FTA drop, accelerated investments and seasonal expenses such as increments etc., will have an impact on revenues. As revenues scale up in subsequent quarters, we expect margins to start inching up in the later part of the year.”

    The embargo on NTO (New Tariff Order) 2.0 continues to impact the broadcast industry in terms of subscription revenues. However, the management of Zee expects to see a positive quantum in terms of revenue growth for FY23 now that the pandemic has subsided.

    Zee reiterated its commitment to scale investments in content, technology and product. The company is particularly increasing investments on OTT content with more regional content in the pipeline and partnering with global studios, independent creators and premium content production houses. Zee5 saw 31 per cent growth in revenues for FY22 and its global monthly active users (MAUs) stood at 104.8 million. Average watch time on the platform increased to 214 minutes.

    Following the success of “Kashmir Files” that grossed Rs 200 crore in the box office, Zee Studios is gearing up to release 20-25 movies this year.

    On the linear TV side, the company plans to increase investments in its Hindi, Marathi and Tamil portfolio of channels to grow market share.

    Linear TV market

    Zee’s linear TV market share declined to 17.1 per cent in Q4 2022. Zee has also considerably brought down its debt to Dish TV India from Rs 5.8 billion in March 2020 to Rs 2.4 billion in March 2022.

    The company reported operating revenue of Rs 8189.3 crore up by 14.1 per cent year-on-year. Its profit after tax increased by 31.7 per cent and stood at Rs 964.4 crore. Advertising revenue stood at Rs 4396.5 crore in FY22 up by 18 per cent year-on-year. Subscription revenue remained stable at Rs 3246.6 crore. The company’s expenditure for the year came up to Rs 6467.3 crore out of which operating expenses stood at Rs 4044.9 crore. The company’s programming and technology costs increased year-on-year driven by higher theatrical revenue, continued investments in Zee5 and new launches across the market.

  • Zee share price rises 20% after Invesco gives up corporate action

    Zee share price rises 20% after Invesco gives up corporate action

    Mumbai: Zee Entertainment Enterprises Ltd (Zeel) witnessed the share price gain by 20 per cent on Thursday, after its largest shareholder Invesco Developing Markets Fund decided not to pursue corporate action against the company.

    The tussle between the company and its shareholder came to a climax on Tuesday after the Bombay high court upheld Invesco’s requisition for an extraordinary general meeting of Zee’s board as legally valid. Soon after, Invesco declared that it would cease to pursue the EGM and that the HC ruling was an important reaffirmation of “shareholder rights.”

    Zeel’s management and Invesco have been engaged in a legal battle for control of the company’s board since October 2021. However, Invesco has reversed gears amidst the ongoing Zeel-Sony merger transaction that is taking place. When completed, this will be the biggest M&E acquisition in the country.

    Zeel and Sony Pictures Networks India had signed definitive agreements to merge in December. Once the merger is completed, Sony Pictures Entertainment, the parent of SPN India, will indirectly hold a majority 50.86 per cent of the combined entity and the promoters of Zeel will hold 3.99 per cent. Other shareholders will hold a 45.15 per cent stake. Zeel MD and CEO Punit Goenka will take on the role of MD and CEO of the combined entity for the next five years.

    “Since we announced our intention to requisition an EGM and add six independent directors to Zee’s Board of Directors, Zee has entered into a merger agreement with Sony,” said Invesco, commenting on the deal. “We continue to believe this deal in its current form has great potential for Zee shareholders. We also recognise that, following the merger’s consummation, the board of the newly combined company will be substantially reconstituted, which will achieve our objective of strengthening board oversight of the company.”

    The Zeel-Invesco dispute began when the media company’s top two investors Invesco Developing Markets Fund and OFI Global China Fund LLC, with a combined stake of ~18 per cent stake in the Zeel, sent a requisition notice to the board on 11 September 2021, calling for an EGM.

    The investors sought the removal of long-standing directors and close associates of the promoters from the board following which two independent directors Ashok Kurien and Manish Chokhani submitted their resignations. Invesco also sought the removal of Punit Goenka.

  • The era of internet belongs to Mayaverse: Subhash Chandra

    The era of internet belongs to Mayaverse: Subhash Chandra

    Mumbai: Essel group chairman Subhash Chandra opened up about the latest corporate developments in an interview with Zee Business’s managing editor Anil Singhvi on Wednesday. He spoke about the Mayaverse, Zee Group’s digital ambitions, Zeel-Sony merger, Yes Bank Dish TV issue and other matters.

    When asked about new trends such as metaverse, crypto and NFTs, Chandra said, “I call it Mayaverse, as the era of internet belongs to Mayaverse.” During the conversation, Chandra hinted that the group will be coming up with something new very soon – this time on the technology front. 

    He said, “we never started any business for money, we always tried to do something new by means of business.”

    He also revealed Zee group’s plans to add one billion users in the next three years. Zee Media’s digital platforms have 300 million active users and the group will focus on monetising digital content going forward.

    Channel’s performance 

    Talking about Zee Media’s performance, Chandra noted that 58 per cent of the viewers watching Zee Media’s international channel WION is a foreign audience. 

    He also stated that WION has more followers on YouTube than the BBC and plans to add another 500 million viewers in the next five years.

    Speaking about the corporate developments at Essel Group, Chandra said that it has reduced 92 per cent of debt at the promoter level and the rest of the debt will be cleared within one to two months. He also admitted that venturing into the infra business was a ‘mistake’. 

    The conflict between Dish TV-Yes Bank

    On the boardroom conflict between Dish TV and Yes Bank, he commented that the previous management at Yes Bank ‘did fraud with us’ and that many people in the media lack the right information regarding the matter between Yes Bank and Dish TV. Coming to the ongoing merger between Zee Entertainment Enterprises Limited and Sony Pictures Networks India, he said the merger is moving in the right direction and after regulatory approvals, the merger will be completed.

    The media mogul is hopeful for a bounce-back with more ‘strength’ and ‘power’ and observed that the environment is quite positive in the country under PM Modi’s leadership. “We are continuously working on many fronts,” he said.

  • Sports not the only way to grow OTT business: Punit Goenka

    Sports not the only way to grow OTT business: Punit Goenka

    Mumbai: “Sports is not the only way to grow the OTT business,” remarked Zee Entertainment Enterprises Ltd (Zeel) MD and CEO Punit Goenka in an investor call on Wednesday. Zeel posted its third quarter financial results for the fiscal 2022. The company’s OTT platform Zee5 crossed 100 million monthly active users (MAUs) for the first time.

    While responding to a question on how acquisition of sports content will grow the OTT business, Goenka replied, “Until now we have not factored in sports in our OTT business. It is a faster way to grow the business but can it be done without sports? Certainly.”

    Streaming platform Zee5 posted impressive metrics during the quarter garnering 101.9 million MAUs and 9.6 million daily active users (DAUs) growing sequentially and over last year in terms of both MAUs and DAUs. The watch time on the platform also significantly improved to reach 201 minutes which is up by 15 minutes quarter-on-quarter. Zee5 released 51 shows out of which 11 were originals during the quarter.  The platform’s strong performance was registered on the back of a compelling slate of content launched during the quarter and enhanced user experience, said Goenka.

    Meanwhile, the merger process initiated between Sony Pictures Networks India and Zeel in December is making steady progress. The company noted that it will apply to National Company Law Tribunal (NCLT) after receiving necessary approvals for its scheme by the stock exchanges. Furthermore, the company will seek the approval for the scheme from the Competition Commission of India (CCI) in parallel.

    On the linear business side, all India viewership share of the network decreased by 40 bps to 17.3 per cent. During the quarter, the company launched 25+ shows across markets resulting in lower margins. “There have been significant investments in content this fiscal which in turn will reflect in our margins in the short term,” noted Goenka. “This is in line with the content strategy implemented across various genres. As we launch new shows across markets to drive viewership on the linear side we will post strong growth across viewer metrics.”

    “Advertising spending and consumer sentiment saw a significant boost in demand and we see this trend continue as we move forward,” he observed.

    Also read: Zeel reports Rs 21,126 million revenue in Q3’FY22 | Indian Television Dot Com

    Zeel posted an increase in revenues by seven per cent quarter on quarter but saw a slight decline of three per cent year on year in the third quarter of 2021. Both subscription and advertising revenues were lower compared to the same period last year.  

    “In the previous fiscal, we were recovering from a nationwide lockdown which had led to a huge pent-up demand,” explained Goenka. “On subscription revenue, the embargo on pricing has significantly impacted the overall growth across the industry. With NTO 2.0 implementation pushed to the next fiscal year, it is still too early to predict how FY 2023 will look.”

    He added, “In the last 12 months to 15 months the pay TV market has seen an erosion of 4.6 million households which have moved from pay TV to free to air and this is largely caused by the pandemic situation. That’s the cause of further degrowth in subscription revenues. The total TV business has reduced both in terms of reach and revenues on account of a slowdown in the movie business. The lack of fresh movie content for the last two years on the linear side has definitely had an impact. We’ve also had a cricket world cup which impacts movie viewership.

    Speaking about the impact of NTO 2.0 on subscription revenues he said, “It’s still too early to predict. We’re in an uncertain environment with regards to NTO 2.0 implementation. We need a 45-day window to implement and we’re already on 2 February. We must get a clear go ahead on implementation of NTO 2.0 by 15 February.”

    Zee Studios released five films during the quarter out of which one was Hindi and the rest were in regional languages. The movie business faced pandemic induced headwinds but overall opening of theatres and strong pipeline of films augured well for the movie industry at large, said Goenka. “Our studios business has a strong pipeline of films for the year ahead and we are hopeful that the third wave of the pandemic will subside soon, encouraging consumers to return to the big screen. We remain hopeful for an improvement in creative revenues for the subsequent three quarters.”  

    On the impact of the third wave, he said, “The third wave and surge of infections in 2022 could potentially have an impact on the fourth quarter results although it is too early to predict the outcome. The faster rate of recovery during this wave assures the quick resumption of services and activities across markets. We are hopeful that we will end the financial year registering steady growth across our businesses.”

    Zeel posted Rs 21,126 million in the quarter out of which advertising revenue stood at Rs 12,608 million and subscription revenue at Rs 7902 million. Zee5 posted quarterly revenues of Rs 1459 million which is up by 11.8 per cent quarter-on-quarter.

  • “Sports to be a key focus area,” says Punit Goenka as talks move ahead on Zeel-Sony merger

    “Sports to be a key focus area,” says Punit Goenka as talks move ahead on Zeel-Sony merger

    Mumbai: Sports will be a key focus area for the Zeel-Sony merged entity, said Zee Entertainment Enterprises Ltd (Zeel) MD and CEO Punit Goenka, as the two media companies move forward in building one of the largest entertainment networks in the country. The mega merger announced in September is currently underway.

    “Certainly the merged entity will focus on sports. Zee on a standalone basis will not. We have just finished our non-compete with Sony on the sports side. While we will reconsider sports on a standalone basis, right now, my focus is to look at it from a joint consolidated basis with Sony,” said Goenka, elaborating on the merger. “A lot has changed since we exited the sports business and we sold it to Sony right. So, it is coming full circle. The opportunity is great because the digital landscape has opened up a new opportunity for monetisation which did not exist five years ago. The sector itself will see a lot more happening going forward.”

    The Zeel MD said the TV broadcasting industry has witnessed intense competition since Zee’s inception three decades ago and any consolidation will benefit the overall M&E industry. However, he highlighted that the decision on any kind of bidding will be taken by the board of the new merged company.

    Goenka was addressing the Apos India summit organised by Media Partners Asia, which began virtually on Tuesday. In a conversation with Media Partners Asia executive partner and co-founder Vivek Couto, Goenka also spoke about the role of technology in content creation, broadcasting and streaming, the scope of SVOD business and strategy for TV in a new regulatory environment.

    The Zeel MD said the vision is to create a media powerhouse, but reiterated that the content company thus formed, will remain ‘Indian’ and the focus will be on Indian content, language and culture. Speaking about the synergies with Sony, he said, “The reason I chose Sony is because the two businesses are complementary with minimal overlap. Across linear and digital platforms and genres, we will encompass an entertainment suite that the whole family can watch.”

    According to Goenka, Zeel’s strategy of being SVOD-first will give it the leverage to fight going forward. Even though India has more advertising video on demand users there are 45-50 million paid subscribers that will grow to 200 million in the coming years, he said. The company’s streaming platform Zee5 has also recently announced a content slate of 17-18 originals in H2 2021.

    “The audience watching content on streaming platforms in India are clearly a mobile-first audience looking at the sheer numbers from mobile platforms,” he said. “These audiences are spending 148 minutes watching on SVOD platforms whereas on AVOD it is less than 30 minutes on average.”

    He added, “Before the pandemic people didn’t think 40-50 million people would pay for content but that is the case today. They are not paying a great deal but they are paying. The Zee DNA is to nurture the best minds in the creative ecosystem, be language first, build national scale and we will replicate that on the digital platform,” he said.

    On entering new language markets like Odisha, Bhojpuri and Punjab with their TV channels, Goenka said, “Nobody thought these markets were relevant. We thought even though it is not a big market we can build it into one.”

    Goenka said that data will have a critical role in creation of content in the future. “We have upgraded a technology and innovation centre in Bengaluru which will transform the company’s content offering. At Zee, we are embracing technology. We are a bit late compared to global players but will catch up quickly,” he added.

  • Zeel Q2 FY22: New content launches bolsters ad revenue growth

    Zeel Q2 FY22: New content launches bolsters ad revenue growth

    Mumbai: Zee Entertainment Enterprises Ltd (Zeel) announced its financial results for the second quarter FY 2022 ended on 30 September. The company reported 14.9 per cent revenue growth year-on-year (YoY) and 20.1 per cent domestic advertising revenue growth YoY.

    The company’s total revenues stood at Rs 1305 million which was up 17 per cent sequentially. Its EBIDTA was Rs 4121 million and its EBIDTA margins at 20.8 per cent. The company’s advertising revenues stood at Rs 10,893 million and subscription revenues at Rs 7,885 million. Domestic ad revenue grew on a quarter-on-quarter basis by 18.9 per cent. Subscription revenues were down marginally by 1.5 per cent YoY. The company indicated that delay in NTO 2.0 implementation continues to impact pricing. The new timeline for NTO 2.0 rollout was extended till 1 April 2022.

    The broadcaster saw its total TV viewership decrease slightly but grew its network viewership share by 70 bps on account of new show launches across all markets. It released 13 new shows and movies during the quarter. Zee TV, Zee Marathi, and Zee Tamil’s performance was soft during the quarter. The Bengali, Kannada, and Telugu channels posted a strong performance. Genre-wise news and movies led to lower contribution in overall viewership.

    The company reported 93.2 million global monthly active users (MAUs) for its streaming platform ZEE5. Zeel’s film production arm Zee Studios has a strong slate of movies ready for H2 FY22 across Hindi, Tamil, Telugu, Marathi, and Punjabi languages being planned for release.

    In an investor call, Zeel managing director and chief executive officer Punit Goenka shared an update on the merger between Zeel and Sony Pictures Networks India. He said, “After receiving in-principle approval from the board, the due diligence process has commenced and is in steady progress. We are confident that this process will be completed within the stipulated timelines or even before that. Post which we will move on to the next steps as mandated by the law.”

  • Zee-Sony entity to generate close to $2 billion in revenue

    Zee-Sony entity to generate close to $2 billion in revenue

    Mumbai: Zee Entertainment Enterprises Ltd (Zeel) on 22 September announced its plans for a merger with Sony Pictures Networks India (SPNI). The merged entity will be the largest media and entertainment player in India with a scale close to $ two billion in revenue.

    In an investor call on Wednesday, Punit Goenka, who has been proposed as the managing director and chief executive officer of the merged entity for a period of five years, stated that “the primary objective will be growth for the company overall. Whether that will be for the digital or sports business that the new board of the merged company will decide,” according to a report by Moneycontrol.

    The merger was unanimously approved by the Zeel Board in a meeting held on Tuesday, where it evaluated the agreement on the financial parameters as well as the strategic value which SPNI brings to the table.

    “Condition for my appointment is the same as what has already been approved by the shareholders. There is no change to that. Any change in remuneration would be subject to board approval,” said Goenka.

    The companies have inked a non-binding term sheet that gives them 90 days to conduct mutual due diligence and come to an agreement that will also require shareholder approval. Post that the scheme will be presented to National Company Law Tribunal (NCLT) and Securities and Exchange Board of India (SEBI). Zeel noted that the Competition Commission of India (CCI) approval is also part of the process.

    According to Goenka, while CCI norms are different for different sectors, in this scenario, it will be a national-level evaluation and not a state-level evaluation. “The deal has been arrived at with Sony after months of negotiation and preparation. And I think we have a formidable real deal on the table today.”

    Sony has agreed to infuse $1.6 billion cash which will enable the merged entity to accelerate its digital platform and significantly invest in premium content including sports. Zeel had sold the Ten Sports franchise to Sony five years ago which will now become a part of the merged entity.

    On the matter of channel rationalisation, Goenka said that it will happen at a later date as each channel has its own unique viewership as well as programming. “The focus will be on maximising reach and viewership. Overlaps are there in Hindi-speaking markets of GEC and movies. But the content that exists on the platforms is unique and exclusive. So, the objective will be to maximise viewership and garner revenue rather than shutting down channels,” he added.

    The company has yet to reach out to shareholders like Invesco and LIC on the proposed transaction with Sony.

    In an annual general meeting (AGM) held on September 13, the largest shareholder of Zeel, Invesco Developing Markets Fund and OFI Global China Fund IIC, holding 18 per cent stake in the media company, called an extraordinary general meeting of the shareholders seeking to remove Punit Goenka, the sitting MD, and two more independent directors from the board of the company. The two independent directors Ashok Kurein and Manish Chokhani had submitted their resignations a day prior. The funds sought the appointment of their own six nominees on the board of Zeel.

    Zeel’s promoters had pared their stake in the company to four per cent to pay off debt worth Rs 13,000 crore.