
Sony-ZEE merger would result in job losses, admits Punit Goenka
The bulk of employee rationalisation is likely to happen in corporate functions
The bulk of employee rationalisation is likely to happen in corporate functions
Apart from Sony, ZEE was also in talks with Reliance for a strategic investment deal
The combined company will include 75 TV channels, two film studios, two video streaming services, and a digital content studio.
Though ZEE Entertainment MD and CEO, Punit Goenka's exit is imminent, his father, Subhash Chandra is in no mood to give up.
Industry observers hardly find the move surprising. Sources say former Zee chairman Subhash Chandra’s micro-management of ZEE from outside angered the investors.
Chandra’s resignation as Zee’s chairman marks the end of an era in which he pioneered the growth of private sector broadcast TV in the country. He will remain a board member.
Punit Goenka to reportedly continue as MD and CEO, though it remains to be seen whether the Essel Group will still be classified as promoters with a residual 5% stake.
Announcement of the stake sale ends months of speculation regarding the suitor for Zee, and will help promoters deleverage the group’s balance sheet
With promoters looking to pare their stake in the media company to repay debt, sound FY19 financial results shine light on the quality of the asset.
Besieged with debt, the Essel Group is pinning its hopes on a stake sale in crown jewel Zee to help stay afloat. It helps that the broadcaster is at the top of its game and in sync with the times.