Alibaba, Amazon going after ZEEL stake
Zee Entertainment Enterprises Ltd (ZEEL) MD and CEO Punit Goenka mentioned in the latest financial results, that the company has narrowed down its search for a partner to divest up to 50 per cent stake in the company, an announcement it made in November 2018. ZEEL promoters are in the US reportedly negotiating with Comcast and Sony for a stake sale, according to an unconfirmed news report by CNBC TV18.
The CNBC TV18 report said the bids are in the range of Rs 540-560 per share, which is 24 per cent higher than the closing price of Thursday, 15 February. The agreement is likely to be concluded this week.
ZEEL promoters hold 41.62 per cent share in the company, as of 31st December. It seems that ZEEL promoters are now willing to share more than 50 per cent stake.
ZEEL’s OTT platform ZEE5 stakes are being pursued by Alibaba, Tencent and Amazon, says the report.
The Subhash Chandra-led ZEEL reported 17.9 percent year-on year growth with operating revenue at Rs 2,166.77 crore for the quarter ended 31 December 2018 as compared to the Rs 1,838.07 crore for the corresponding year ago quarter Q3 2018. EBITDA for the quarter under review increased 26.9 percent year-on year to Rs 754.29 crore from Rs 594.42 crore.