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Murphy would not have asked for a better candidate than Zee. Anything that could go wrong, went wrong with the company. After the disastrous 2000 and Sawaal Dus Crore Ka fiasco, it was the company's chori chori chupke chupke act to pick up stake in media houses ABCL and B4U TV which threatened to tear its reputation apart. However, the tele seems to be now out and vision seems to be getting a bit clearer. Sanity appears to be returning now with the company announcing a slew of initiatives in order to regain market leadership, improve its corporate governance, take the Star war to the enemies camp by rejigging its program portfolio and last but not the least improve the corporate governance in the company.

Of all its new plans, it is the stake sale to an international media group that has hogged the limelight. The ambitious plan is a fallout of the group's vision to roll out a global offering of infotainment. It is widely felt that a partnership with a global player will provide Zee greater opportunities to distribute its products on a global scale, and importantly, impart the required impetus to increase its media assets, syndication revenues, technology advantages and access to capital markets. The media and entertainment segment is one of the most rapidly growing segments in the South Asia region, where Zee is aiming to command a lion’s share with appropriate access to technology, distribution and finance. The company is looking to finalise the deal within 3-4 months. On the tricky issue of the stake sale, the company has said that the stake sale could be a combination of divestment of a part of the promoter's 60 percent stake in the company and the issue of fresh equity. International media giants like MGM and Nine Network are reportedly in the reckoning to participate in the equity offloading in the Zee. The stake sale has positive implications for Zee. 

However, the other side of the story is that the company is silent on its transactions with big bull Ketan Parekh. There is absolutely no declaration about the money which was lent to the bull operator on part of the company. This does not bode well for a company which, on one hand, claims to be going for greater transparency and talks about improving corporate governance while, on the other hand, remains shy of divulging the details of the murky deals it entered into with persons with doubtful credentials. It is hoped that the induction of a global partner would help improve the level of corporate governance and transparency in operation of the company, which it badly needs in order to spruce up its image, which has been affected, especially after its failed stake acquisition bids in ABCL and B4U TV. The sawaal now is - will the company deliver on its promises?   

Amit Singh

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