Zee Entertainment’s MD & CEO Punit Goenka addressed employees on Thursday in a townhall saying that global brands were always interested in the company.
The statement comes three days after Sony called off its proposed $10-billion merger with Zee citing non-fulfilment of closing conditions. It also slapped a $90 million termination fee on Zee (around Rs 750 crore), invoking arbitration. Zee, in turn, has moved the NCLT in Mumbai asking for the merger scheme to be implemented by Sony and has said that it will challenge the arbitration proceedings initiated by the latter in Singapore.
In his address on Thursday, Goenka said that the company had the potential to touch newer heights in the future, even as its legal woes mount. Disney Star may move court over Zee’s decision to pull back from its $1.5-billion TV sub-licensing deal for 2024-27 ICC tournaments signed in August of 2022.
“Nothing can beat the entrepreneurial spirit of Zee. There is a reason why global brands are always interested in us. No one can beat an Indian company from winning India’s heart,” he said of the company, which was founded in 1992 by Goenka’s father Subhash Chandra. Zee is also credited with ushering in the cable & satellite revolution in India. The Zee-Sony combine would have been a significant player across TV, digital and film studios, taking on the other combine of Disney-RIL, which is currently in the works.
On the termination of the merger with Sony, Goenka said, “On the envisaged merger with Sony, all I would like to say is that the board has taken note of the communication received from Sony and all the legal options are being evaluated and implemented as per the law of the land. Beyond this, I only want to say that we should now move forward as a team.”
Goenka also said that he believed the intrinsic value of Zee remained intact despite the failed merger with Sony.
“Zee continues to be a truly unique and valuable asset that harbours the capabilities to deliver returns to its shareholders. We have always set trends for the industry to follow, and we must continue on this path of innovation, ” he said.
Adding that the media industry was witnessing rapid changes, Goenka said these were giving new shape to Zee.
“We have to mould ourselves to be well-positioned to capitalise on the opportunities coming our way. We need to continue building on the momentum and fire on all cylinders, “he added.