MUMBAI: Subhash Chandra-promoted Indian media conglomerate Zee Entertainment EnterprisesBSE 0.32 % (ZEE) today agreed that it is in “advanced stage of discussion” for the sale of its sports business.
ET had first reported on August 8 that rival broadcaster Sony Pictures Networks India (SPN) is set to buyout ZEE’s sports business for about Rs 2,000 crore.
Sources had informed ET that the deal was almost done and an official announcement could be made by end of the month.
On Monday, when a couple of news channels started flashing that the deal is expected by this week, ZEE has come out with its clarification.
ZEE, while agreeing to be in talks to sell off the sports business, has not mentioned SPN’s name, though. It said in a filing, “In order to maximize shareholders returns, the company keeps exploring various strategic options for entering into new business and/ or exiting or restructuring the existing business.”
“As part of the said ongoing process, we are at an advanced stage of discussion for the sale of the sports business with the potential buyer(s).”
ZEE’s sports business, housed under TEN Sports brand, consists of 5 channels, while SPN already has a bouquet of four channels.
The deal will make sports broadcasting in India a duopoly between media baron Rupert Murdoch’s 21st Century Fox-owned Star India and Japanese giant Sony Corp-owned SPN.
Incidentally, it was in 2006, exactly 10 years back, when SPN (then Sony Entertainment Television, or SET) made the first attempt to pick up a 50% stake in Ten Sports, then owned by Dubai-based Abdul Rahman Bukhatir’s Taj Group. However, the talks failed on valuations and ZEE acquired a stake in the sports company. Later, ZEE took complete control of Taj Television and moved operations from Dubai to India.
