Theories being floated include incitement by a leading Indian conglomerate; global media baron firing from Invesco’s arms and a China angle—all suggesting attempts on to ruin the Sony-ZEE merger plan.
India is a land of limitless possibilities. Zee has basked in glory for three decades. Now is the time for discarding the old so that the new can arise.
While a large section of the industry is sceptical about the success of the potential merger, there are others who are upbeat.
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.
The Essel Group wanted a time extension to fetch better value for its assets including roads, green energy, and its flagship Zee Entertainment Enterprises.
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.
