History
Independent era
The company was launched on 15 December 1991 as Zee Telefilms, a brand name retained until 2006.
In April 1995, the company launched the premium movie channel Zee Cinema, the first channel of its sort in the country.[4][5][6] Until 1999, programming was done by Star TV.[7] In the following years Zee Cinema has also catered to international markets like South-East America, Europe, Middle East, North Africa, Pakistan, Indonesia[8] and Asia Pacific and the Rest of Africa.[citation needed] Zee Cinema (Canada) is available in Canada as a joint ventures with Ethnic Group.[6]
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.[9][10]
In 2002, the company acquired a majority stake (51%) in ETC Networks. In 2003, they planned to purchase Rajshri for ₹50 crore. With the deal, Zee would have access to all of Rajshri's films, but the plan fell later on.
In 2006, they acquired Integrated Subscriber Management Services Limited, and in November 2006, it received a 50% stake in Taj Television, owner of TEN Sports. In that same year, the company was rebranded as Zee Entertainment Enterprises.
In February 2010, the business acquired an additional stake (95%) in TEN Sports.
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.[11] Some of Zee Studios's productions include Gadar: Ek Prem Katha, Natsamrat, Sairat and Rustom.
As Zee Telefilms, the company formed part of BSE Sensex from 2000 to 2005. The news and regional entertainment channel business was spun off into a separate company in 2006 as Zee News.
In May 2011, Star Den entered into a 50/50 joint venture with Zee Turner and Zee Entertainment Enterprises (ZEEL) to distribute and market all channels owned by the company and ZEEL, their respective affiliated channels and other third-party channels in India, Nepal and Bhutan.
It also owns a music label, Zee Music Company.
In 2015, Zee acquired Sarthak TV, an Odia-language pay television channel.[12] One year later, on 28 July 2016, it launched Zee One, aimed at the German market. A Polish version of the channel was launched in 2017.
In 2016, Zee launched Zee Mundo, a Spanish-language Bollywood movie channel targeting Latin America.
In 2017, the company acquired the majority stake of the Reliance Broadcast Network.[13] It also planned to acquire 9X Media in October 2017 for the cost of ₹160 crore, however, the plan fell through in March 2018.[14][15]
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.[16]
In 2018, Zee launched Zee Theatre, which offers a collection of recorded theatre plays also called teleplay- produced in India and internationally.[17]
Sale talks
In February 2019, media reported that Essel Group was in talks to sell[18] their shares from the Zee Entertainment Enterprises to save from the debt.
Sony, Comcast-Atairos, a firm led by American cable giant Comcast were shortlisted for the bid. However, they were competing with technology giant Apple and Reliance Industries among others.
Top Sony officials including Mike Hopkins, chairman of Sony Pictures Television,[18] 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 April 2 reports said that[19] some other promoters[20] were willing to sell their shares worth ₹332 crore.
On April 3 media reported Sony and Zee Entertainment Enterprises deal off[21] amid valuation differences which opened the door for Comcast-Atairos.
On August 1 media reports Invesco Oppenheimer Fund to buy 11% stake in Zee Entertainment[22]
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.[23]
Attempted merger with Sony Pictures Networks India
On 22 September 2021, the company announced its intent to merge with Sony Pictures Networks India.[24] Sony Pictures will hold a majority stake in the proposed merged entity, which will be headed by Zee's Punit Goenka.[25] 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.[26]
On 4 October 2022, the Competition Commission of India (CCI) conditionally approved the proposed merger of Zee Entertainment Enterprises Limited (ZEE) and Sony Group Corporation (SGC) in India (the proposed transaction).
On 10 August 2023, the National Company Law Tribunal approved the proposed Sony/Zee merger.[27]
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.[28] However, on January 22, 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 January 21.[29]
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.[30] However Zee board rejects a demand from Invesco to convene an extraordinary general meeting.[31] 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.[32][33]
OFI Global China Fund, who also moved the NCLT along with Invesco, remarked at the hearing that the meeting that the Zee Entertainment board had conducted on October 1 was just a legal formality and that it's a classic case of Forum shopping.
On 11 October 2021 Invesco[34] write an open letter to the other shareholders saying they are disappointed that the leadership of Zee has resorted to a reckless public relations campaign in response to the overwhelming demand from shareholders for leadership changes at Zee network. also, they implemented that they tried to merge Zee with some other Indian company in early 2021 but the Zee board rejected it.
Zee Board replied to Invesco's open letter saying they didn't care about the company, and Invesco is not motivated by concerns related to any corporate governance issue[35] but "by the events that transpired during February–April 2021 pointing Invesco purposed deal with Reliance Industries.[36]
Reliance Industries Ltd (RIL) said it proposed to merge all its media properties with Zee Entertainment at fair valuations during discussions in February and March 2021 that US investment firm Invesco helped arrange with the managing director and member of the founding family of the media and entertainment company.
On 21 October, Bombay High Court asks 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 October 22.[37][38]
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.[39] so HC postponed hearing of the Zee-Invesco matter to October 26.and on October 26 Bombay High Court has restrained Invesco from taking any action in furtherance of their requisition notice (to call an EGM).[40]
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.[41]
On 22 December, Board of Zee signed definitive agreements with Sony after received approval from its board of directors[42]
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.[43][44][45]
₹2,112 crore (US$260 million) (2022)[2]