GECs
Sun cold on Maa TV buy
MUMBAI: The Sun Network has put on hold its plans to acquire Maa TV, a Telugu language channel which runs mainly on SMS-based interactive game shows.
Negotiations between the two companies have come to a standstill for the last two months. “Both sides have not been pursuing further talks,” says a source familiar with the developments.
No agreement could be reached on the valuation. There were other issues like a complete takeover which could not be sorted out, the source points out.
However, the talks can revive, he adds. For Sun, the acquisition of Maa TV would mean it gets a channel which already enjoys distribution in Andhra Pradesh. Besides, Sun feels it will be able to acquire a competing channel at a low price.
Maa Television Network executive director admits talks were initiated with Sun. “We were talking on a possible equity participation,” he says. But he was not willing to comment further on the issue.
A source close to Gemini TV also confirmed talks had taken place between Sun and Maa TV executives. “But the talks have been in suspension for over two months,” he says.
Some observers feel Sun’s reluctance to acquire Maa TV may be related to the launch of Aditya, a Telugu entertainment channel targeted at the youth and family. But a final decision on whether Sun should acquire Maa TV or not has not been taken yet, the source says.
Maa TV is fighting on a turf dominated by Sun Network and ETV. Says Prasad, “Despite competition, we have reached a break even situation operationally. Our accumulated loss, though, is about Rs 60-70 million.”
GECs
Sebi sends show-cause notice to Zee over fund diversion, company responds
Regulator questions 2018 letter of comfort and governance lapses; company vows robust legal response
MUMBAI: India’s markets watchdog has reignited its long-running scrutiny of Zee Entertainment Enterprises, issuing a sweeping show-cause notice that drags the broadcaster and 84 others into a widening governance storm.
The notice, dated February 12, has been served by the Securities and Exchange Board of India to Zee, chairman emeritus Subhash Chandra and managing director and chief executive Punit Goenka, among others. At its heart: allegations that company funds were indirectly routed to settle liabilities of entities linked to the Essel Group.
The regulator’s probe traces its roots to November 2019, when two independent directors resigned from Zee’s board, flagging concerns over the alleged appropriation of fixed deposits by Yes Bank. The deposits were reportedly adjusted against loans extended to Essel Group entities, triggering questions about related-party dealings and board oversight.
A key flashpoint is a letter of comfort dated September 4, 2018, issued by Subhash Chandra in his dual capacity as chairman of Zee and the Essel Group. The document, linked to credit facilities availed by certain group companies from Yes Bank, was allegedly known only to select members of management and not disclosed to the full board—an omission SEBI believes raises red flags over transparency and governance controls.
Zee has pushed back hard. In a statement, the company said it “strongly refutes” the allegations against it and its board members and will file a detailed response. It expressed confidence that SEBI would conduct a fair review and signalled readiness to pursue all legal remedies to protect shareholder interests.
The notice marks the latest twist in a saga that has shadowed the broadcaster since 2019. What began as boardroom unease has morphed into a full-blown regulatory confrontation. The final reckoning now rests with SEBI—but the reputational stakes for Zee, and the message for India Inc on governance discipline, could scarcely be higher.
