Zee Entertainment Enterprises

Zee Entertainment Enterprises Limited (ZEEL) (formerly Zee Telefilms) is an Indian media conglomerate. Headquartered in Mumbai, it has interests in television, print, internet, film, and businesses related to mobile content, and operates 35 channels worldwide.

History

Independent era

In April 1995, the company launched the premium movie channel Zee Cinema, the first channel of its sort in the country. Until 1999, programming was done by Star TV. In the following years Zee Cinema has also catered to international markets like South-East America, Europe, Middle East, North Africa, Pakistan, Indonesia and Asia Pacific and the Rest of Africa.[citation needed] Zee Cinema (Canada) is available in Canada as a joint ventures with Ethnic Group.

Zee Telefilms launched a Nickelodeon-branded programming block in 1999 as part of a distribution deal between Viacom International and Zee Telefilms. It was replaced by a new Cartoon Network block in 2002.

In 2008, Zee Networks launched Zee Motion Pictures and Zee Limelight (now Zee Studios) for the development, production, distribution and marketing of mainstream films in Indian languages, including Hindi, Malayalam, Tamil, Telugu, Kannada, Bengali and Marathi.

In 2015, Zee acquired Sarthak TV, an Odia-language pay television channel.

In 2017, the company acquired the majority stake of the Reliance Broadcast Network. It also planned to acquire 9X Media in October 2017 for the cost of ₹160 crore, however, the plan fell through in March 2018. A partially owned subsidiary, Diligent Media Corporation, is a publisher of Indian daily newspapers and websites. DMC is a joint venture between Zee and the Dainik Bhaskar Group.

In 2018, Zee launched Zee Theatre, which offers a collection of recorded theatre plays also called teleplay- produced in India and internationally.

Sale talks

In February 2019, media reported that Essel Group was in talks to sell their shares from the Zee Entertainment Enterprises to save them from debt.

Top Sony officials including Mike Hopkins, chairman of Sony Pictures Television, and Tony Vinciquerra, chairman of Sony Pictures, had visited Subhash Chandra and his family at his residence shortly after Chandra announced his intent to sell half of the promoter holding in Zee Entertainment Enterprises to a global strategic investor. On 2 April reports said that some other promoters were willing to sell their shares worth ₹332 crore. On 3 April media reported the Sony and Zee Entertainment Enterprises deal was off.

On 1 August media reports Invesco Oppenheimer Fund to buy 11% stake in Zee Entertainment.

In September 2021, it was reported that Invesco Developing Markets Funds and OFI Global China Fund LLC, who jointly holds a 17.88% stake, wanted Punit Goenka (also the son of founder) to step down as MD and CEO. It was also reported that Essel Group owns a sum of 3.99% minority stake.

In 2024, Zee Entertainment Enterprises partnered with Sony Pictures Entertainment.

Attempted merger with Sony Pictures Networks India

On 22 September 2021, the company announced its intent to merge with Sony Pictures Networks India. Sony Pictures will hold a majority stake in the proposed merged entity, which will be headed by Zee's Punit Goenka. In December 2021, the merger was approved by the two companies boards. Sony will hold a stake close to 51% in the company, with Zee controlling the remaining stake.

On 10 August 2023, the National Company Law Tribunal approved the proposed Sony/Zee merger.

On 18 January 2024, the anticipated $10 billion merger between Zee Entertainment Enterprises and Sony Pictures India progressed as ZEE's stock increased amid reports that CEO Punit Goenka might step down, potentially resolving a major deadlock in the merger process. However, on 22 January 2024, Sony Pictures Networks India issued a notice to Zee Entertainment Enterprises effectively terminating the merger proceedings due to, among other reasons, the closing conditions to the merger not being satisfied by the given deadline of 21 January.

Controversy

Dispute between promoters

On 11 September 2021, Invesco asked Zee management to call shareholders an "extraordinary general meeting" (EGM) to consider its demands. One of the main demands was the removal of Punit Goenka, son of the Zee Network founder. However Zee board rejects a demand from Invesco to convene an extraordinary general meeting. Invesco Developing Market Funds Moves to National Company Law Tribunal (NCLT) and Bombay High Court seeking a mandatory order for Zee Enterprises Entertainment Limited (ZEEL) to call the extraordinary general meeting (EGM) that the shareholder has been demanding.

Zee Board replied to Invesco's open letter saying they didn't care about the company, and Invesco was not motivated by concerns related to any corporate governance issue but "by the events that transpired during February–April 2021 pointing Invesco purposed deal with Reliance Industries.

On 21 October, Bombay High Court asked the Zee board to call EGM as demanded by shareholder Invesco, and Counsel appearing for Zee Entertainment said the company will inform the date of the EGM by the morning of 22 October.

On 22 October, Zee replied to the court that the board can't give a nod to something that will turn out to be illegal, so HC postponed hearing of the Zee-Invesco matter to 26 October. Also, on 26 October Bombay High Court had restrained Invesco from taking any action in furtherance of their requisition notice (to call an EGM).

On 7 December, Invesco headed towards a resolution expected to back the merger deal with Sony as long as the Goenka family does not get any preferential equity.

On 22 December, Board of Zee signed definitive agreements with Sony after received approval from its board of directors

Zee Music vs Sonu Nigam

Sonu Nigam alleged that he was banned by the Zee Music Company after he tweeted in support of politician Kumar Vishwas.

Owned assets

India

International

Defunct channels and networks

Over The Top (OTT)

In February 2016, Zee Entertainment Enterprises forayed into video-on-demand with the launch of its OTT platform OZEE.

On 14 February 2018, this service rebranded as ZEE5. Since its relaunch as ZEE5, it streams all content from its television network and also movies and original series. ZEE5 claimed 57 million monthly active users in December 2019.

Other assets

Publishing

Source:

• bgr
• Mollywood
• cricket country
• The health site
• India.com
• Sugarbox
• Zee5X

Event management

Source:

• Zee Live
• Super moon, Arth, Edu care, It's A Girl Thing
• Zee Theatre

Film distribution and music

• Zee Studios
• Zee Plex (movie-on-demand service)
• Zee Music Company

External links