Tag: Zee Entertainment

Zee loses another top executive as content head Punit Misra quits

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Punit Misra, the president of content and international markets at Zee Entertainment Enterprises Ltd (ZEEL), has resigned from the company, as per media reports on Friday, April 5.

During his tenure, Misra played a crucial role in managing content for Zee’s linear TV networks and its digital platform, ZEE5, catering to both domestic and international audiences. He also spearheaded the company’s global business initiatives.

In recent weeks, Zee has seen a number of senior-level exits, including Rahul Johri, the president of business, and Nitin Mittal, the president and group chief technology officer. This is reportedly part of Zee’s efforts to prune expenses and streamline its verticals.

During a recent earnings call, Zee’s managing director and CEO, Punit Goenka, outlined a three-pronged approach for the company: cutting costs, reducing overlaps between businesses, and enhancing quality to regain margins. This follows the collapse of Zee’s merger with Sony Pictures Entertainment.

Goenka emphasised that the company will focus on “frugality” across verticals, including technology, content, and marketing, to optimise spending and improve the return on investments. A “sound recalibration” of the OTT cost structure will be an integral part of this process, he had said.

Also read: Zee Entertainment’s MD and CEO Punit Goenka takes 20% voluntary pay cut

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Zee Entertainment identifies businesses that need assessment, launches 3M program

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Zee Entertainment, through the introduction of its Monthly Management Mentorship (3M) program, has identified business verticals that require a critical assessment, it said in an exchange filing.

The business that require assessment include Margo Networks (Sugarbox), Teleplay & Zindagi, Hipi, Weyyak and English Cluster of the Linear TV business.

These identified businesses verticals will need to substantially reduce losses and enhance their performance levels, Zee Entertainment said.

Zee Entertainment has institutionalised a structure called the Monthly Management Mentorship (3M) program to guide and enable the management team to achieve key performance metrics, including the targeted 20% EBITDA margin, proposed by Zee MD & CEO Punit Goenka.

The company’s board has also formed a special committee to review the management’s business performance and provide the required directional guidance.

“Under the able leadership of Mr. Punit Goenka as the MD & CEO of the Company, the businesses are well-aligned and focused towards the set goals for the future,” Zee Chairman R Gopalan said.

The 3M committee has also conducted a detailed analysis of the Technology and Innovation centre, which incurred a ₹600 crore expenditure last year, and highlighted the need to immediately focus on Return on Investment (RoI). The committee has advised that the management should halve its expenditure at the TIC for financial year 2025.

Zee’s music business has been asked by the committee to increase the vertical’s contribution to the overall bottomline of the company. The division has also been asked to further optimise costs, without losing its leadership position in the market.

Shares of Zee Entertainment ended 2.7% lower at ₹138.65. The stock is down 34% in the last 12 months. The stock remains in the F&O ban, which means no new positions can be created in the stock.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Zee Entertainment shares reverse Tuesday’s gains, decline 10%; Stock in F&O ban

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Zee Entertainment shares were down over 10% on Wednesday, February 21. The stock is currently in the F&O ban and no new positions can be created due to the same.

Zee Entertainment shares have been in the red for four of the last five trading sessions. However, in the previous session, it closed over 7% higher. While the stock has gained 12% in the past month, it has fallen 35% in the last six months and 16.83% in the past year.

On Tuesday, February 20, Zee Entertainment denied engaging in any negotiations with Sony Group regarding their previously called-off $10 billion merger deal.

The clarification came in response to reports suggesting a revival of talks between the two media giants.

On another note, news agency Bloomberg on Wednesday reported that the Securities Exchange Board of India (SEBI) has uncovered a $241 million accounting issue at Zee.

Last month, CNBC-TV18 had also reported, citing sources that the SEBI was in the final stages of its investigation against Punit Goenka and Subhash Chandra Goenka and their role at Zee. The sources had said in the first phase of its investigation, SEBI found misuse of funds to the tune of ₹200 crore from Zee Entertainment, benefiting the promoter family. However, now, according to sources, the size of the violation has escalated to ₹800-1,000 crore.

The stock was trading nearly 10% lower at ₹173.75 apiece at 9.30 am on February 21.

Also Read: GQG Exclusive: Rajiv Jain says Indian market valuations ‘extended’ but not ‘crazy’

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Zee Entertainment denies negotiation rumours with Sony to revive $10-billion merger

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Zee Entertainment Enterprises on Tuesday, February 20, categorically denied engaging in any negotiations with Sony Group Corp regarding their previously called-off $10-billion merger deal. The clarification came in response to recent reports suggesting a revival of talks between the two media giants.

In an official exchange filing, the company stated, “We would like to clarify that the company has not been involved in any negotiations, or any other event as stated in the above-mentioned article, and we categorically confirm that the above-mentioned news item is factually incorrect.”

“We wish to clarify that the company is not aware of any information that has not been announced to the exchanges which could explain the aforesaid movement in the trading, and we are not in a position to determine the material impact of the above-mentioned article on the company,” it added.

Earlier reports from The Economic Times had indicated that Zee Entertainment Enterprises was making a last-ditch effort to resurrect the merger deal with Sony Group Corp, which was officially terminated on January 22. Representatives from both companies reportedly met in Mumbai in recent weeks, attempting to overcome major differences that led to the deal’s initial breakdown.

Despite efforts to salvage the agreement, insiders familiar with the matter suggest that significant hurdles remain, and the renewed talks could face failure if unresolved differences persist, ET reported. Executives from both Zee and Sony are reportedly standing firm on their positions, heightening uncertainty over the potential success of the revived negotiations, the report added.

The news had a notable impact on Zee Entertainment Enterprises’ stock performance, which rallied over 10% on Tuesday, pausing their three-day losing run. The stock gained after a report said that its $10-billion merger with Sony could be revived. The scrip was trading 9.72% higher at ₹195.85 apiece on NSE during today’s late afternoon deals.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Zee Entertainment shares rally 10% on reports of attempt to revive $10 billion merger with Sony

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Shares of Zee Entertainment Enterprises Limited rallied over 10% in trade Tuesday (February 20), pausing their three-day losing run. The stock gained after a report said that its $10 billion merger with Japanese tech giant Sony could be revived. The scrip was trading 9.72% higher at ₹195.85 apiece on NSE during today’s late afternoon deals.

Despite rallying 10% today, the ZEEL stock has tumbled 33% so far this year. Earlier on January 23, Zee shares ended 30% lower to mark their biggest single-day drop on record. The stock had first opened 10% lower, post which, circuit filters were revised lower to 15%, 20%, 25% and eventually 30% before circuit limits were opened.

The stock had earlier slipped 8% on January 9, when news of the merger being called off had first surfaced via media reports.

Tech view

On Tuesday, Zee shares was seen trading higher than the 5-day, 10-day, 20-day simple moving averages (SMAs) but lower than 30-, 100-, 150-day and 200-day SMAs. The counter’s 14-day relative strength index (RSI) came at 39.3. A level below 30 is defined as oversold while a value above 70 is considered overbought.

Zee shares were subjected to multiple de-ratings and sell calls since the Sony deal was called off. The Street also cited a rising competition and the dangers arising from a potential merger between Reliance Industries and Disney.

Global broking firm CLSA had downgraded Zee to ‘Sell’ from ‘Buy’ with a revised target price of ₹198. CLSA said Zee’s valuation declining to August 2021 levels of 12 times price-to-earnings from the merger estimate of 18 times.

Citi has also downgraded Zee Entertainment to ‘Sell’ after the merger was called off owing to non-operational concerns. Elara, too, had downgraded Zee to ‘Sell’ with a target of ₹170.

Zee was aiming to revive their $10-billion merger that was called off on January 22, according to an Economic Times report. The report added that meetings have taken place over the last last fortnight to “salvage the deal”. CNBC-TV18 couldn’t independently verify the details of the report.

It further added that Zee is expected to inform Sony in the next 24-48 hours if it’s willing to accept the terms and conditions.

Representatives from both sides have met at various locations across Mumbai as attempts to revive the deal has gathered steam recently, the report stated.

Post the deal was called off, in a post-earnings call, Hiroki Totoki, president, COO and CFO of Sony said that India, on a long-term basis, has a great growth potential. It’s a very appealing market. “We will try to seek various opportunities and if we can find another opportunity that would replace this type of plan,” he is quoted as saying.

The Japanese tech giant first proposed to combine its India entertainment business with Zee back in December 2021. The negotiations collapsed after more than two years.

Last month, Sony said that it terminated the transaction because “among other things, the closing conditions to the merger were not satisfied” by the agreed closing date. The Japanese tech giant said it had engaged “in good faith” in discussions to get an extension to the closing date.

Zee at the time said that it denied all allegations made by Sony that it breached the merger agreement, adding that it would take “appropriate legal action.” Zee was seeking a termination fee of $90 million.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Zee argues only Indian court can decide the fate of $10 billion merger with Sony

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Zee Enterprises wants the National Company Law Tribunal (NCLT) to make Sony Pictures Network India (now Culver Max Entertainment) to go through with the proposed merger — that would have created a $10 billion media giant — that the Japanese media giant recently walked out of.

Not just that, the company controlled by Punit Goenka (Managing Director and CEO of Zee) wants the dispute to be settled within India.

The NCLT (a quasi judicial body that rules on matters pertaining to the Companies Law)  has asked Sony to respond to Zee’s appeal within the next two weeks. The case will be next heard by the judges on March 12.

How did Zee and Sony get to this point?

The move from Zee has come days after Sony alleged that the management of Zee had breached the terms of the proposed merger agreement, which was agreed upon in September 2021 and later called-off by Sony in January 2024.

After calling-off the deal, Sony wanted an urgent hearing at the Singapore International Arbitration Centre but sources told CNBC-TV18 that while the arbitration could still go on, the emergency of the matter had been denied.

The Mumbai-based network Zee now argues that only the NCLT has exclusive jurisdiction to decide the fate of the merger.

Zee also called Sony’s demand for $90 million in termination fees ‘legally untenable’.

Also Read: Exclusive | ‘Condition Precedent’ are the main bone of contention in Zee-Sony legal tussle: Sources

Separately, Mad Men Film Ventures, a shareholder of Zee Entertainment Enterprises, had earlier in January filed a petition requesting both parties to implement the merger as it was approved by the NCLT in August 2023.

NCLT will also hear Mad Men Film Ventures’ application on March 12.

Also Read | Zee-Sony merger called off: Here is a complete timeline of how the $10 billion deal started and ended

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Zee to press application against Sony in NCLT, hearing on February 6

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

In a significant development, Zee Entertainment Enterprises Ltd (Zee) is set to escalate its battle against Sony. Having obtained interim relief, Zee is now poised to press its application against Sony in the National Company Law Tribunal (NCLT), seeking enforcement of the proposed merger between the two entities.

Scheduled to be heard on February 6, Zee’s application before the NCLT seeks enforcement of the proposed merger with Sony. The Emergency Arbitrator’s approval to approach the NCLT adds a layer of complexity to the corporate tussle, allowing Zee to press ahead with its legal recourse.

This development follows a setback for Sony, as an emergency arbitrator at the Singapore International Arbitration Centre (SIAC) rejected the plea filed by Culver Max and BEPL (Bangla Entertainment Pvt Ltd). The rejected plea aimed to restrain Zee from seeking enforcement of the merger through any corporate dispute tribunal or the NCLT.

SIAC on Sunday, February 4, rejected the plea citing a lack of its jurisdiction.

In a stock exchange filing on Sunday Sony said that it was disappointed with the SIAC’s decision and would vigorously arbitrate the matter in Singapore in front of a full SIAC tribunal.

“We are disappointed in the decision by the Singapore International Arbitration Centre (SIAC). This decision is only a procedural one, ruling only as to whether Zee Entertainment would be permitted to pursue its application with the NCLT,” it said.

“We will continue to vigorously arbitrate the matter in Singapore in front of a full SIAC tribunal and pursue SPNI’s right to terminate the merger agreement and seek a termination fee and other remedies. We remain confident in the merits of our position in both Singapore and India,” it added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

CNBC-TV18 Newsbreak Confirmed | Emergency Arbitrator denies Sony’s application against Zee Entertainment in SIAC

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The Singapore International Arbitration Centre (SIAC) has denied application for emergency interim relief filed by Sony against Zee Entertainment, the latter said in a stock exchange filing on Sunday, February 4, confirming CNBC-TV18’s newsbreaking earlier today.

The exchange filing quoted SIAC as saying that the Emergency Arbitrator has no jurisdiction or authority to injunct the company from approaching the NCLT to implement the merger scheme as these are matters that fall within the statutory system and are for the NCLT to decide.

Sony Pictures Entertainment later issued a statement saying it was disappointed in the SIAC’s decision. “This decision is only a procedural one, ruling only as to whether Zee Entertainment would be permitted to pursue its application with the NCLT. We will continue to vigorously arbitrate the matter in Singapore in front of a full SIAC tribunal and pursue SPNI’s right to terminate the merger agreement and seek a termination fee and other remedies. We remain confident in the merits of our position in both Singapore and India,” the Sony statement said.

Earlier in the day, CNBC-TV18 reported, citing sources that in a setback for Sony, the Emergency Arbitrator had denied the former’s application against Zee Entertainment in the SIAC,  While the arbitration could still go on, the emergency of the matter had been denied, the sources had said.

CNBC-TV18 #NewsbreakConfirmed, SIAC denies application for emergency interim relief filed by #Sony.

👉 Emergency Arbitrator has no jurisdiction or authority to injunct the Company from approaching the NCLT to implement the Merger Scheme since these are matters which fall within… https://t.co/4YPhWBsNh8 pic.twitter.com/v9Vec8kBGR

— CNBC-TV18 (@CNBCTV18Live) February 4, 2024

Last week, sources had said the hearing for an emergency arbitration in the Zee Entertainment-Sony merger took place in Singapore on January 31.

The Singapore International Arbitration Center is the first Asian arbitration institution to offer this process and has received over 130 applications since 2010 for the appointment of an Emergency Arbitrator. In case the application for emergency interim relief is accepted, an Emergency Arbitrator is appointed within a day.

Sony initiated arbitration proceedings for an alleged breach of terms by Zee Entertainment. In response, Zee has initiated legal action to contest Culver Max and BEPL’s claims at the Singapore International Arbitration Centre.

Zee Entertainment also called Sony’s demand for $90 million in termination fees legally untenable and denied the breach of the merger agreement in response to Sony.

Also Read: RBI’s crackdown on Paytm Payments Bank: The inside story

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Zee Vs Sony: Emergency arbitration in Singapore, hearing today

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Hearing for an emergency arbitration in the Zee Entertainment-Sony merger will take place in Singapore on January 31, sources with knowledge of the matter told CNBC-TV18.

The Singapore International Arbitration Center is the first Asian arbitration institution to offer this process and has received over 130 applications since 2010 for the appointment of an Emergency Arbitrator.

In case the application for emergency interim relief is accepted, an Emergency Arbitrator will be appointed within a day.

Sony has initiated arbitration proceedings for an alleged breach of terms by Zee Entertainment. In response, Zee has initiated legal action to contest Culver Max and BEPL’s claims at the Singapore International Arbitration Centre.

Zee Entertainment has called Sony’s demand for $90 million in termination fees legally untenable and has also denied the breach of the merger agreement in response to Sony.

Earlier, a Reuters report indicated that Sony had scrapped the proposed $10 billion merger with Zee after the latter failed to meet certain financial terms of the deal and come up with a plan to address them.

Zee has denied the allegations in a letter to Sony, also reviewed by Reuters, and accused the Japanese company of “bad faith” in calling off the merger.

On January 29, Zee promoter Subhash Chandra told Mint in an interview that the company’s promoters plan on taking their stake back up to 26% from the current 4%.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Zee promoters plan to increase stake to 26%, asks investors to have ‘patience’: Report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Subhash Chandra, promoter of Zee Entertainment Enterprises Ltd., plans on increasing the promoter stake in the company back to 26% from the current 4% levels. He said this in an interview with Mint. He added that he does not plan on raising any debt by raising funds from outside.

“It will take time (stake increase). We will need a lot of money. But we are clear that we are not going to raise funds from the outside. We don’t want debt. It’s not going to be overnight, but that’s the intent,” the Mint interview quoted Chandra as saying.

Zee Entertainment has been in focus after its proposed $10 billion merger with Sony was terminated earlier this month, leading to a sharp sell-off in the stock. Shares fell over 30% in a single day, its biggest drop on record.

CNBC-TV18 also accessed a letter that Chandra had written to Finance Minister Nirmala Sitharaman, seeking her intervention in the deal. The letter was written on January 16, six days before Sony pulled the plug on the deal. The letter highlighted how he repaid nearly 92% of the outstanding debt, by selling a stake, which took the promoter’s shareholding down to 4% from 40% earlier.

In response, Zee has now approached the National Company Law Tribunal (NCLT), seeking further directions on implementing the merger. The company has also termed Sony’s $90 million termination fee demand as legally untenable.

One of the points of contention for the merger to go through was the fact that Sony did not want Punit Goenka to lead the merged entity. Chandra said that Punit Goenka was ready to step aside, but the merger was still called off.

“The question for the shareholders is if you think Punit can’t run the business, who can? So if shareholders think that Sony would agree to the merger if Punit stepped aside, it is ill-founded,” the interview quoted Chandra as saying.

Chandra also urged Zee’s shareholders to have patience in the interview, adding that Punit Goenka is the right person to lead the “profitable, zero-debt” company.

Zee Entertainment’s shares are out of the F&O ban. The stock is down 40% over the last month and has halved over five years.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow