MxMIndia

Tag: Zee

  • Approval marks yet another firm and positive step ahead in the merger completion process, notes communique

    99.99% Zee shareholders approve merger with Sony

    By Our Staff

     

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

     

    The resolution put forth during the meeting pertaining to the proposed merger was whole-heartedly supported by 99.99% of ZEEL’s equity shareholders, notes a communique, adding:  The approval marks yet another firm and positive step forward, in the overall merger completion process.

     

    Said Punit Goenka, MD & CEO, ZEE Entertainment Enterprises Ltd: “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.”

     

  • For tech talent at its Technology and Innovation Centre in Bengaluru

    Zee to launch Metaverse Onboarding Programme

    By Our Staff

     

    Zee Entertainment Enterprises Ltd (ZEEL) has announced the launch of its Metaverse Onboarding Programme. The programme will induct 100+ campus graduates from top tech institutes at its Technology and Innovation Centre in Bengaluru. The centre is focused on building the metaverse platform by leveraging Augmented Reality (AR), Virtual Reality (VR), Non-Fungible Tokens (NFTs) and relevant data models for its digital platforms.

     

    Speaking about the initiative, Amit Goenka, President – Digital Businesses & Platforms, Zee said: “At Zee’s Technology and Innovation Centre, we are imbibing a sharp strategic focus on enhancing our tech capabilities through a confluence of technology, data and talent. As we break new grounds and redefine entertainment by providing robust experiences across platforms, we are delighted to converge Zee’s collaborative and entrepreneurial culture in the physical and digital realms through an immersive environment such as the metaverse. We aim to provide intuitive experiences across all aspects of an individual’s consumption, creation and transactional journey, and the first-ever metaverse induction program at ZEE, will not only help enhance our employee experience by boosting innovation and productivity, but also our consumer experience by several notches.”

     

    Added Nitin Mittal, President – Technology & Data, Zee: “For over three decades, we have been a pioneer in breaking the norms of the industry and creating path-breaking content for more than 1.3 billion viewers across the globe. Our focus now remains on building capability for ZEE by leveraging technology to provide our consumers with extraordinary entertainment experiences. Our quest is to shape the next chapter of India’s Media & Entertainment Industry and the Metaverse Induction Program is yet another major step in that direction. Inducting, nurturing and retaining the right talent is key to any organization’s success and we are committed to giving a world class experience to our tech enthusiasts right from day one.”

     

  • Onboards 700+ tech experts to build cutting-edge, world-class products

    Zee unveils Technology & Innovation Centre in BLR

    By Our Staff

     

    Zee Entertainment Enterprises Ltd has announced the launch of its Technology and Innovation Centre in Bengaluru. The state-of-the-art facility was inaugurated by Karnataka Chief Minister . Basavaraj Bommai, in the presence of Amit Goenka, President – Digital Businesses & Platforms, Zee and Nitin Mittal, President – Technology & Data, Zee. The 80,000 feet centre will be the company’s epicentre to build a strong cohort of tech, data and talent.

     

    Said Mittal, President – Technology & Data, ZEE: “At the Tech & Innovation Centre, we are building ability for ZEE to leverage digital technologies to improve our reach and engage our customers anytime, anywhere across all devices. We have been a frontrunner in creating engaging content for more than 1.3 billion viewers and are currently focused on building Web 3.0 entertainment platforms. This Centre will build the metaverse future of ZEE including AR, VR, NFTs and relevant data models to our digital platforms.”

     

     

  • So the telltale signs were that he was present at Goafest not as a representative where he has be Group President/Chief Strategy Officer/Mentor, but as Secretary of The Advertising Club

    So what’s next for Dr Bhaskar Das?

    By Our Staff

    There were telltale signs at Goafest last week.

    One of the oldest and seniormost delegates present at the three-day event was perhaps also the most energetic. Present at nearly every session held and of course the awards. He ran upto the stage to meet star guests. Selfies galore with all the people who matter. 

    He is decidedly one of the most cerebral advertising and marketing professionals, one of the few people in the industry who has done his Ph D in marketing twice (not once) and is now working towards his thesis. He is on the Governing Council of MICA, and on the advisory boards and faculty at a few other temples of learning. And then amidst all of this, he does five to seven sales calls a day, is a door-opener for meetings with people who are otherwise unreachable to even the big bosses at media giants. And, yes, he also answers to our questions in Das ka Dum Monday through Friday.

    So the telltale signs were that he was present at Goafest not as a representative where he has be Group President/Chief Strategy Officer/Mentor, but as Secretary of The Advertising Club. Yes, you read it right: he was not representing Republic at Goafest.

    We tried reaching out to Dr Bhaskar Das, he politely declined to speak. We wrote to Republic via the marketing and PR head. No reply. We wrote to Republic owner, MD and editor-in-chief Arnab Goswami via his secretary. Not once, but twice. No reply. News entities we feel should be concerned about authentic information getting out in the market, are often the last to cooperate with sharing of news.

    We also feel that there should be some graciousness, but this is not a story on morals and what’s not cool.

    Das’s exit, if indeed true, will of course significantly impact Republic. In the short run at least. For in the last two years, where many corporate and advertising biggies have been dubbing the channel’s content as toxic, Das and the former Group CEO Vikas Khanchandani have been holding fort. Das’s persuasive and self-effacing demeanour has ensured that even those who detest the channel and its face didn’t mind inviting him for a coffee.

    In the days when the channel was facing a lot of heat, despite friends in the industry asking him to quit, his only reply was: Yes, I am disturbed with the controversy. My age doesn’t allow me the strain. But I will never desert the ship at a time like this..

    While entities like The Times of India, Zee and Dainik Bhaskar have thrived even after his exit, all of them have had a much longer legacy and many leaders who have had a fair equity amongst the powers that be.

    Republic has had a string of senior and mid-level exits. COO and distribution head Priya Mukherjee, Group CEO Vikas Khanchandani and now Dr Das.

    So what does Dr Bhaskar Das do next?

    He has just turned 69. In fact a friend of the family told us that he put in his papers on his birthday on Sunday, on his return from Goafest. He wants to spend more than the hour-odd that he currently does at the gym and spend time with the family, but he also once told us that he wants to fight possible cognitive malnutrition by doing work.

    He is active with MICA, and has also been teaching at various other business schools. He also mentors a few start-ups. Is working on his next PhD. Gives gyaan and put things in perspective for whoever needs the help. And is everyone’s friend.

    Will he join another news entity?

    We don’t know, but we’ll be surprised if he is (or rather his services are) not lapped by anyone.

    He once told us: “Lord Krishna will take care of me. He knows it. I am a das, a loyal servant. I’ve always had cordial relations with whosoever I’ve left.”

    Hmmm.

  • To enhance the corporate investor relations

    Zee appoints Mahesh Pratap Singh as Head of Investor Relations

    By Our Staff

     

    Zee Entertainment Enterprises Ltd has appointed Mahesh Pratap Singh to head Investor Relations, spearheading the engagement with the investor and analyst community.

     

    In this role, Singh will report into Ronit Gupta. President-Finance & Investor Relations, Zee, and will be based in Mumbai.

     

  • Most in the A&M&E arena have welcomed the move. Now one has to just wait out for the regulatory fineprint to be cleared

    #SonyZee Merger in ~8 months, Cricket rights & OTT key to future

     

     

    By Our Staff

     

    As most of the paperwork has been completed with the two parties having signed a definitive agreement, all eyes are now on the regulatory approvals. The 75 per cent shareholder approval is being given much importance, given the problems that Invesco had with the Zee promoters. But that we hear isn’t much of a problem. Invesco wants maximum bang for its invested buck, and is not known to be a predatory investor. Either in India or the rest of the world.

     

    However, it must be noted that while the Zee-Sony merger is being called a done deal, there have been a few instances when the final closure hasn’t happened. The much touted Publicis-Omincom merger, for instance, fell through. In India too, some like HDFC and Max Life, RCom-Aircel, Snapdeal-Flipkart and IDFC-Shriram Finance are said to have failed at the ‘due diligence’ or a variety of circumstances, most often dubbed ‘unforeseen’.

     

    But both Zee and Sony have been wanting to get this done, with each other and with others. Given that it’s been discussed in their own offices for a while, care would’ve been taken to ensure their books and operations are merger-ready.

     

    A lot is being said about what the merger and what it will mean. Other than it becoming a behemoth and the biggest broadcast conglomerate in the currently, there is a great amount of soul searching that the combined entity needs to be done.

     

    01. Other than the Sony Sab in the Tier 2 (or shall we say 1A), none of the general entertainment channels are #1 the pack.

    02. The sports channels have some good properties, but without IPL and the various India cricket matches, it doesn’t have the desired clout

    03. Both Sony Liv and Zee 5 have some good content, but Disney+Hotstar among the Indian entities, and Netflix and Amazon Prime Video are bigger. Plus there’s Voot that’s getting into sports and could emerge as a significant player. It’s gambit for Bigg Boss, for instance, was significant. Perhaps a merger of Zee5 and SonyLiv will be a good idea

    04. The strength of Zee has been in its regional play, but its mainstay Marathi offering has taken a beating in ratings. The others are good, and there is an urgent need to consolidate that franchise

    05. The studio business is good and strong, but the likes of an Endemol, Balaji and now even Applause are doing some great, buzzy work

     

    In the light of the above, and some exceptional talent that both organisations have, there is a clear advantage of a merged entity.

     

    One of the factors discussed in the run-up to the agreement signing on Tuesday was the factor that Zee will be reduced to a minority shareholder, even as Punit Goenka will be the boss. Founder and chairman emeritus Subhash Chandra is known to never be a silent member in the M&E space. He is sure to spring back to something significant soon with a few of his other M&E interests. Also, what about the charges that Invesco had made about Zee and its governance. If indeed they are incorrect as Zee has said, will the conglomerate file a defamation suit against it? Or will there be a settlement.

     

    All eyes are clearly on the merger happening sooner that. Most in the A&M&E arena have welcomed the move.

     

  • It’s subject to customary closing conditions, including regulatory, shareholder & 3rd party approvals

    One step closer to the merger. Zee & Sony sign definitive agreements

    By Our Staff

     

    Sony Pictures Networks India Private Limited (SPNI) and Zee Entertainment Enterprises Ltd. (ZEEL) have announced that they have signed definitive agreements to merge ZEEL with and into SPNI and combine their linear networks, digital assets, production operations and programme libraries. The agreements follow the conclusion of an exclusive negotiation period during which ZEEL and SPNI conducted mutual due diligence. After closing, the new combined company will be publicly listed in India. The closing of the transaction is subject to certain customary closing conditions, including regulatory, shareholder, and third-party approvals.

     

    Under the terms of the definitive agreements, SPNI will have cash balance of USD $1.5 Bn (assuming an INR:USD exchange rate of 75:1) at closing, including through infusion by the current shareholders of SPNI and the promoters (founders) of ZEEL, 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.

     

    SPNI is an indirect subsidiary of Sony Pictures Entertainment Inc. (SPE). Under the transactions contemplated by a non-compete agreement, SPE, through a subsidiary, will pay a non-compete fee to certain promoters (founders) of ZEEL, which will be used by such promoters (founders) to infuse primary equity capital into SPNI, entitling the promoters (founders) of ZEEL to acquire shares of SPNI, which would eventually equal approximately 2.11% of the shares of the combined company on a post-closing basis. After the closing, SPE will indirectly hold a majority 50.86% of the combined company, the promoters (founders) of ZEEL will hold 3.99%, and the other ZEEL shareholders will hold a 45.15% stake.

     

    Punit Goenka will lead the combined company as its Managing Director and CEO.  The majority of the board of directors of the combined company will be nominated by the Sony group and will include the current SPNI Managing Director and CEO, N P Singh. On closing, Singh will assume a broader executive position at SPE as Chairman, Sony Pictures India (a division of SPE) reporting to Ravi Ahuja, SPE’s Chairman of Global Television Studios and SPE Corporate Development.

     

    As part of the definitive agreements, the promoters (founders) of ZEEL have agreed to limit the equity that they may own in the combined company to 20% of its outstanding shares. This construct does not provide the promoters (founders) of ZEEL any pre-emptive or other rights to acquire equity of the combined company from the Sony group, the combined company or any other party.  Any shares purchased by the promoters (founders) of ZEEL, must be in compliance with all applicable laws including any pricing guidelines.

     

    Commenting on this development, Punit Goenka, MD & CEO, ZEE Entertainment Enterprises Ltd. said, “It is a significant milestone for all of us, as two leading media & entertainment companies join hands to drive the next era of entertainment filled with immense opportunities. The combined company will create a comprehensive entertainment business, enabling us to serve our consumers with wider content choices across platforms. I am immensely grateful to the teams at ZEEL, SPE and SPNI for their efforts, that swiftly led us to this point within the stipulated timelines. This merger presents a significant opportunity to jointly take the businesses to the next level and drive substantial growth in the global arena. I look forward to working with the guidance of the esteemed members of the combined company’s board to unlock the potential of this merger, and I wish N.P. Singh all the best in his new role at SPE. His contribution to the Indian media & entertainment industry has been invaluable. I am most certain that our collective wisdom, rich experience and expertise will lead to a more value accretive and exciting company for our shareholders and employees, and a more engaging one for our customers and partners.”

     

    Added Ahuja: “Today marks an important step in our efforts to bring together some of the strongest leadership teams, content creators, and film libraries in the media business to create extraordinary entertainment and value for Indian consumers,” adding: “I want to thank Punit and his team at ZEEL and the small army of people at SPE and SPNI who have worked so hard to get us to this point. I especially want to thank N.P. Singh, who presented us with the idea to explore this merger well over a year ago.  N.P. has done extraordinary work building SPNI to what it is today, and we look forward to continuing our work with him in his new role after closing.”

     

    Said Singh: “This merger will create a company that’s best in class and will redefine the contours of the media and entertainment industry. As a representative of SPE on the Board of the new merged company, it will be my endeavour to provide strategic guidance and support to the company’s operating team in achieving our vision. I am also excited at the opportunity of being appointed, Chairman, Sony Pictures India, to oversee SPE’s investments and craft a wider footprint for Sony in India.”

     

    SPE was advised on this transaction by Morgan Stanley, KPMG Corporate Finance, and Shardul Amarchand Mangaldas & Co. ZEEL was advised by KPMG, JP Morgan, Trilegal and Boston Consulting Group.

     

     

     

  • No. While Zee has declined to conduct an EGM, sources tell us the 18 percenters are not going to take things lying down

    What next as Zee takes on Invesco-OFI?

     

    By Our Staff

     

    So will we see a real-life Mahabharata war here? Right now it appears to be that, but in true TV soap style, guess it’s necessary to have some flexing of muscles before Zee founder and chairman emeritus Subhash Chandra pulls out all his trump cards, as he almost always does.

     

    On Friday afternoon, in filings to the stock exchanges, Zee has clearly declined the holding of an EGM, with details in an annexure. The letter addressed to Invesco and OFI concludes:

     

    “At its meeting held on October 1, 2021, the Board considered the Requisition Notice. Earlier, the Board obtained written legal advice from the Company’s counsel as well as independent legal advice from eminent former judges of the Supreme Court and senior corporate lawyers. After considering the unanimous advice received about the legal validity of the Requisition Notice, the Board deliberated, and unanimously concluded that the Requisition Notice is not valid, as it suffers from multiples legal infirmities which are summarized in the Annexure to this communication…. Accordingly, in the best interests of the Company as a whole, including all its shareholders and stakeholders, we express our inability to convene the EGM on the lines requisitioned by you.”

     

    Here’s a link to filing: https://www.bseindia.com/xml-data/corpfiling/AttachLive/4b679cc6-bceb-4b78-a730-8acddc9eeb01.pdf

     

    And this what a statement noted:

     

    This has reference to the requisition notice received by the Board of Zee Entertainment Enterprises Ltd., from Invesco Developing Markets Funds and OFI Global China Fund, LLC. The Board, comprising of experienced professionals deliberated and discussed various legal and statutory implications of the requisition notice.

    The Board sought the opinions of independent counsel, legal experts including senior retired Supreme Court judges and evaluated the matter in a fair and transparent manner. In its meeting held on 1st October 2021, the Board has arrived at a conclusion that the requisition is invalid and illegal; and has accordingly conveyed its inability to convene the Extraordinary General Meeting to Invesco Developing Markets Funds and OFI Global China Fund, LLC.

    The Board has arrived at this decision by referring to various non-compliances under multiple laws, including the Securities and Exchange Board of India Guidelines, Ministry of Information and Broadcasting Guidelines and key clauses under the Companies Act & Competition Act, and after taking into account the interests of all the shareholders and stakeholders of the Company.

    The Company cannot comment on any future actions since the matter is sub judice.

     

    From what we gather, there have been a fair number of attempts made to convince various quarters about how Zee is being wronged. It’s not that the Invesco-OFI aren’t reaching out to the media, but Friday’s development is sure to see lawyer fees as a significant component in the account books of the Zee as well as of Invesco-OFI.

     

    While we had The Times of India front-paging a report on the National Company Law Tribunal diktat on the EGM, there was this interview of RPG Enterprises chairman in The Economic Times that batted for Chandra and Punit Goenka and even spoke of an unnecessary shareholder activism.

     

     

    According to our sources, the Zee founder is making every attempt to ensure that the company he so painstaking created and nurtured doesn’t get out of his hands. The final approval for the Zee-Sony merger would require an ‘aye’ of 75 per cent of ZEEL’s shareholders many of who could work on the guidance of the government.

     

    Meanwhile, we can be sure that the Invesco-OFI camp is not going to sit quiet. First, there is an NCLT hearing coming up on October 4.

     

    Wait for it.

     

    Dear Editor: we think, we need to seriously consider employing a journalist well-versed in company law on our rolls. What say?

  • We couldn’t have not asked a question on the issue, but we don’t know much yet. So we thought we would ask this light question… Here’s Dr Bhaskar Das with his response in the September 22 edition of Das ka Dum. Here goes…

    Das ka Dum with Dr Bhaskar Das | So Zee & Sony Pictures India are looking at merging. What do you think should the new entity be called: See, Zony, Sony Zee or something else?

    Bhaskar DasWe couldn’t have not asked a question on the issue, but we don’t know much yet. So we thought we would ask this light question… Here’s Dr Bhaskar Das with his response in the September 22 edition of Das ka Dum. Here goes…

     

    If you wish to access the archives, please go to the Das Ka Dum tab on the website’s top navigation bar.

     

     Q. So Zee and Sony Pictures India are looking at merging. What do you think should the new entity be called: See, Zony, Sony Zee or something else?

     

    A. Your question reminds me of quote from the Bard of Avon: ”What’s in a Name? That which we call a Rose by any other Name would Smell as Sweet”. Let’s focus on Fundamentals and not on Incidentals. This reported merger seems really strategic and symbiotic. So, beyond any other thought, I feel it’s good for business for both organisations. And let’s celebrate that.

  • As per the arrangement, Punit Goenka to continue as Managing Director & Chief Executive Officer of the merged entity

    Hum Saath Saath Hain. Zee & Sony express interest to merge. Punit Goenka to be Big Boss of combined entity

    By Our Staff

    The Board of Directors of Zee Entertainment Enterprises Limited (ZEEL) held a meeting on September 21, 2021 and unanimously provided an in-principle approval for the merger between Sony Pictures Networks India (SPNI) & ZEEL.

    Here’s the press release issued to MxMIndia and the stock exchanges:

    The Board has evaluated not only on financial parameters, but also on the strategic value which the partner brings to the table. The Board concluded that the merger will be in the best interest of all the shareholders & stakeholders. The merger is in line with ZEEL’s strategy of achieving higher growth and profitability as a leading Media & Entertainment Company across South Asia. The Board has authorized the management of ZEEL to activate the required due diligence process.

    The shareholders of SPNI, will hold a majority stake in the merged entity. The shareholders of SPNI will also infuse growth capital into SPNI as part of the merger such that SPNI has approximately USD 1.575 billion at closing, for use in pursuing other growth opportunities.

    Basis the existing estimated equity values of ZEEL and SPNI, the indicative merger ratio would have been 61.25% in favour of ZEEL. However, with the proposed infusion of growth capital into SPNI, the resultant merger ratio is expected to result in 47.07% of the merged entity to be held by ZEEL shareholders and the balance 52.93% of the merged entity to be held by SPNI shareholders.

    ZEEL and SPNI have entered into a non-binding term sheet to combine both companies’ linear networks, digital assets, production operations and program libraries. The term sheet provides an exclusive period of 90 days during which ZEEL and SPNI will conduct mutual diligence and finalize definitive agreement(s). The merged entity will be a publicly listed company in India.

    As part of the transaction, Mr. Punit Goenka will continue to be the Managing Director and CEO of the merged entity. Further, certain non-compete arrangements will be agreed upon between the promoters of ZEEL and the promoters of SPNI. According to the term sheet, the promoter family is free to increase its shareholding from the current ~4% to up to 20%, in a manner that is in accordance with applicable law. Majority of the Board of Directors of the merged entity will be nominated by Sony Group.

    It is anticipated that the final transaction would be subject to completion of customary due diligence and execution of definitive agreements and required corporate, regulatory and third- party approvals, including the votes of ZEEL’s shareholders.

    ZEEL’s strong expertise in content creation and its deep consumer connect established over the last 3 decades, coupled with SPNI’s success across entertainment genres (including gaming and sports) will add significant value to the merged entity and its management team, thereby increasing shareholder value multifold.

    Speaking on the development, Mr. R. Gopalan, Chairman, ZEE Entertainment Enterprises Ltd. said, “The Board of Directors at ZEEL have conducted a strategic review of the merger proposal between SPNI and ZEEL. As a Board that encompasses a blend of highly accomplished professionals having rich expertise across varied sectors, we always keep in mind the best interests of all the shareholders and ZEEL. We have unanimously provided an in-principle approval to the proposal and have advised the management to initiate the due diligence process.

    ZEEL continues to chart a strong growth trajectory and the Board firmly believes that this merger will further benefit ZEEL. The value of the merged entity and the immense synergies drawn between both the conglomerates will not only boost business growth but will also enable shareholders to benefit from its future successes. As per legal and regulatory guidelines, at the required stage, the proposal will be presented to the esteemed shareholders of ZEEL for their approval.”

    Under the guidance of the Board, the management of ZEEL, ably led by Mr. Punit Goenka, continues to steadily work towards achieving higher profitability in line with its set goals for the future. With this corporate development, the merged entity will result into an accelerated growth and a significant opportunity to create tremendous value for all its stakeholders.

     

    Meanwhile, Sony Pictures Network has issued a communique:

     

    Sony Pictures Networks India (SPNI) and Zee Entertainment Enterprises Ltd. (ZEEL) today announced that they have entered into an exclusive, non-binding Term Sheet to combine both companies’ linear networks, digital assets, production operations and program libraries.  The non-binding Term Sheet provides an exclusive negotiation period of 90 days during which ZEEL and SPNI will conduct mutual diligence and negotiate definitive, binding agreements. The combined company would be a publicly listed company in India and be better positioned to lead the consumer transition from traditional pay TV into the digital future.

    The merger of ZEEL and SPNI would bring together two leading Indian media network businesses, benefitting consumers throughout India across content genres, from film to sports. The combined company is expected to benefit all stakeholders given strong synergies between ZEEL and SPNI.

    Under the terms of the non-binding Term Sheet, Sony Pictures Entertainment, the parent company of SPNI, would invest growth capital so that SPNI has a cash balance of approximately USD $1.575 billion at closing for use to enhance the combined 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. Sony Pictures Entertainment would hold a majority stake in the combined company. Current ZEEL Managing Director & CEO Punit Goenka is to lead the combined company. The combined company’s board of directors would include directors nominated by Sony Group and result in Sony Group having the right to nominate the majority of the board members.

    It is anticipated that a final transaction would be subject to completion of customary due diligence, negotiation, and execution of definitive binding agreements, and required corporate, regulatory and third-party approvals, including ZEEL shareholder vote.

  • Father Subhash Chandra has weathered several storms, and he could well come out of this one too

    Can Punit Goenka survive the coup?

     

    By Our Staff

     

    Primetime, 9pm, is the beginning of the top-rated shows across all general entertainment channels. It’s the same on Star Plus, Sony, Colors as well as Zee TV. But on Monday, September 13, at Zee, there was a fair amount brewing off-air as well.

     

    Two directors – Ashok Kurien and Manish Chokhani – resigned from the Board. Or so the stock exchanges were intimated. Now, Kurien has been founder Subhash Chandra’s friend, and confidante from even before he set up Zee. Journalists like this correspondent took Zee and Chandra (he would suffix Goyal or Goel in his early days) seriously in the early 1990s thanks to Kurien, then one of the posterboys of Indian advertising.

     

    Chandra started out as a rice trader, and anyone who has been exposed to agricultural trading will tell you that one needs to be very sharp to be able to navigate the vagaries of the business. Media may be dramatically different, but in the days when Chandra was entering the scene, there were many situations to contend with.

     

    One was Rupert Murdoch who wasn’t obviously being kind to Zee which had emerged ahead of his Star network. Chandra wasn’t one to let Murdoch have it easy. But come 2000 and Kaun Banega Crorepati happened as did an assortment of saas-bahu sagas, and Zee lost its numero uno status amongst Hindi general entertainment channels.

     

    In the early 2000s, Zee – which was also a darling of the stockmarkets – saw some trouble with government regulators about the ways the company holdings were structured. Chandra steadily got out of the tangles, and started rebuilding the Empire.

     

    In the meantime, he grew the rest of the network. Investments in regional and news channels, distribution, films and overseas fare ensured that the empire had derisked itself from only flagship Zee TV being the cash cow.

     

    In the early 2000s, Chandra’s sons Punit and Amit got active with the various ventures and eventually headed critical components of the media empire.

     

    It was all hunky dory until many incorrect investments led to the company notching up heavy debts. This resulted in the family being pushed to having a minority holding in the all-important Zee Entertainment. Media and distribution were part of other companies. In early August 2021 though, Chandra wrote an open letter stating that he had 91.2 per cent of his debt with 43 lenders. Also, the balance dues will be settled soon.

     

    Cut to last week, when Bengaluru-based proxy advisory firm, Institutional Investor Advisory Services India (IiAS), raised some red flags on corporate governance issues at Zee Entertainment.

     

    This led Zee Entertainment to file a letter it received from its key investors to the stockmarkets.

     

    The letter started with this: We, Invesco Developing Markets Fund (formerly Invesco Oppenheimer Developing Markets Fund) and OFI Global China Fund llC are shareholders of Zee Entertainment Enterprises Limited and hold, as on the date of this letter, 7,43,18,476 equity shares and 9,73,50,000 equity shares, respectively representing an aggregate of 17.88% of the paid-up share capital of the Company that carries the right of voting.

     

    Invesco and OFI asked for the removal of Punit Goenka, Manish Chokhani and Ashok Kurien as directors, and the appointment of six independent directors.

     

    So will Goenka exit as CEO is the question that’s being asked by everyone. The annual general meeting is scheduled for today, September 14, at 4.30pm. The extraordinary general meeting that the investors have asked for in their mail dated, Saturday, September 11, has not been scheduled so far.

     

    There have been views that Invesco and OFI couldn’t have acted in the way they did without a clear study of the situation.

     

    However, according to industry sources, what turn this entire episode takes will depend a fair bit on how some quarters in the government react. The Subhash Chandra family has 3.99 per cent equity, and other than the 17.88 held by the Invesco and OFI, there are investors like LIC and other financial institutions which could follow the central government’s advisory.

     

    Clearly this is a soap opera that’s going to see some twists and turns for sure.

  • The media stalwart gets set to launch Azaad, a GEC targeted at rural audiences. An interview with Pradyuman Maheshwari

    MxM Live with Bharat Ranga

     

    Media stalwart Bharat Kumar Ranga’s venture Beginnen Media is putting the finishing touches on an all-new general entertainment channel targeted at rural audiences. Ranga, who moved out of Zee Entertainment in late 2014, has had first-hand experience with Zee Anmol, Zee’s FTA channel, as well as heading the international and new domestic businesses at entertainment conglomerate. After leaving Zee, Ranga set up regional channels, an ad sales outfit and film production firm as an entrepreneur.

     

    In this interview with MxMIndia founder and editor-in-chief Pradyuman Maheshwari, Bharat Kumar Ranga speaks at length about why he is looking at the rural landscape, the opportunities therein, and his plans for Azaad and Beginnen Media.

     

    Watch. Enjoy. Like

     

     

    (References in the interview to Usha, is Usha Thomas, the senior PR professional, who is heading the comms function at Beginnen. The reference to Rachin is Rachin Khanijo, who led team in marketing at Zee and Eros Now in the recent past)