InvestorQ : Who do you think got the best deal in the merger; Zee, Sony or Subhash Chandra?
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Who do you think got the best deal in the merger; Zee, Sony or Subhash Chandra?

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Rashi Mehra answered.
3 months ago
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I think both Sony and Zee will gain from the merger, although it almost gives a lifeline for Subhash Chandra to get back his company. Zee gets much-needed cash for expansion and at the same time Sony Pictures gets access to the regional content offerings of Zee. With Sony’s strength in sports and general entertainment, this combined library helps them take on competition from the OTT leader, Disney Hotstar. It boosts new media plans.

But Subhash Chandra must be laughing all the way. From 3.44%, his stake goes up to 4% in the merged entity, including non-compete clause. He also has the leeway to enhance the stake to 20% at a future date, based on milestones. Also, his son Punit continues as CEO for another 5 years. Above all, it is positive that the promoter does not lose control of the company. The idea of control passing to portfolio investors or private equity investors is hardly palatable.

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