Subhash Chandra-promoted Indian media conglomerate Zee Entertainment Enterprises on Monday agreed that it is in an "advanced stage of discussion" for the sale of its sports business, according to Gaurav Laghate of the ECONOMIC TIMES. It was first reported on Aug. 8 that "rival broadcaster" Sony Pictures Networks India was set to buy out ZEE's sports business for about Rs 2,000 crore ($300M). On Monday, "when a couple of news channels started flashing that the deal is expected by this week," ZEE came 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 maximise shareholders returns, the company keeps exploring various strategic options for entering in to new business and/or exiting or restructuring existing business." ZEE's sports business, housed under the Ten Sports brand, consists of five channels, while SPN "already has a bouquet of four channels" (ECONOMIC TIMES, 8/29). MONEY CONTROL's Varinder Bansal reported Abneesh Roy of Edelweiss Securities said that while the deal "looks beneficial" for ZEE in the short term as it would "be rid of the loss-making business," in the longer run it "might prove negative" as it will have nothing in the sports category, which is "also important." Roy: "Even though loss-making, Ten Sports contributed roughly Rs 500-600 crore ($75M-$90M) in revenue" (MONEY CONTROL, 8/30).
