InvestorQ : Did Subhash Chandra really gain from the Zee Sony deal?
Riya Dwivedi made post

Did Subhash Chandra really gain from the Zee Sony deal?

Answer
image
shrinidhi Rajan answered.
2 months ago
Follow

Actually, you can say that in the entire saga, Subhash Chandra who had promoted Zee almost 30 years ago, may have had the last laugh. In fact, he avoided losing his crown jewel entirely despite immense pressure from foreign funds. In fact, INVESCO and OFI Global of China had lobbied hard last week to engineer the exit of Punit Goenka. That was when, Sony Pictures had come to the rescue of Subhash Chandra.

The merger of Zee and Sony Pictures will entail a cash infusion of $1.40 billion by Sony Pictures, so there is enough liquidity for growth. The Essel group gets 2% additional stake from Sony Pictures for the non-compete clause. They also gets an option to hike stake from 4% to 20%. Sony is also happy as it lets them take on Disney Hotstar more effectively.

7 Views