Zee, Sony and Reliance declined to make any further comments.
Reliance said it decided against proceeding further, adding “we have never resorted to any hostile transactions.” 13 that differences arose over the role of the founding family and ways in which it could increase its stake. Reliance confirmed discussions were held with Goenka in March over a “broad proposal” to merge their media operations. Zee has said a merger with Sony is the best deal on the table, but it is open to offers from other bidders.
The terms of the non-binding Sony deal, with a 90-day exclusive period, allow Chandra’s family to raise its stake to 20% - terms that run counter to Invesco’s objectives. 22 that Zee has entered friendly merger talks with Sony Group Corp., which has been scouting for Indian assets for some time. helmed by Asia’s richest man Mukesh Ambani - fell through, it sought the ouster of Goenka.Ĭhandra countered by announcing Sept. After Invesco’s attempt to facilitate a buyout of Zee in March by Reliance Industries Ltd. The spat is threatening to spark a takeover battle. Zee has asked a court in Mumbai to block Invesco’s call for the shareholder meeting. Invesco has stuck to its demand for a shareholder meeting to fire Chandra’s son from the board and as CEO, saying the company’s founders were enriching themselves at the expense of ordinary shareholders. fund has a “certain larger design” to take over the empire he founded. The bitter face off between Chandra and Invesco has involved a war of words, including allegations by the tycoon that the U.S. Its market value has halved to about $4 billion from its 2018 peak, bogged down by debt raising at the group level and share pledging by the founders. had a very small presence in India before vaulting to pole position overnight with a 27% share of the market after inheriting Murdoch’s local STAR channels from its 2019 acquisition of 21st Century Fox Inc.’s entertainment assets.Īlso Zee’s stock is relatively cheaper now. That gives local players like Zee a newfound appeal. India’s entertainment market will grow almost 30% to $29 billion by 2023, Ernst & Young estimates. And the business case remains as India has 200 million television homes currently compared to 5 million then.” “Rupert Murdoch saw value in Zee 30 years ago and made Subhash Chandra his business partner. Zee is “a brilliant business starting point for any suitor in India or overseas,” said Paritosh Joshi who runs the media consultancy Provocateur Advisory in Mumbai. and Disney are seeking a foothold in India, one of the world’s most promising pools of future viewers. Global giants such as Netflix Inc., Inc. Zee also owns a vast library of local-language content that goes back to 1990s - an increasingly lucrative asset amid global streaming and cross-cultural hits like South Korea’s ‘Squid Game.’ Zee’s own streaming platform is a leader among local players with almost 73 million monthly active users. Zee’s shares have plunged 50% from a 2018 record.Īt stake is a company that commands 17% of the Indian media and entertainment market, reaching more than 600 million people. Invesco, unhappy with the way Zee is run, wants to remove Chandra’s son Punit Goenka as its CEO, overhaul the board and get a new owner. While Chandra’s son is running Zee as chief executive officer, the media mogul is looking for ways to raise his family’s shareholding. His family’s stake in Zee Entertainment is down to less than 4% after he pledged shares to pare debt owed by his wider conglomerate Essel Group.
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