Future uncertain for Zee Gantalu

Zee 24 Gantalu, Zee Media Corp Ltd’s (ZMCL) Telugu news channel, is facing an uncertain future as it is saddled with losses and is failing to compete in a crowded marketplace. 

As a precursor to the restructuring, ZMCL has floated a subsidiary company named 24 Gantalu News Ltd to hold the Telugu news channel. 

ZMCL is weighing various options including the most obvious ones: shutting down the channel or finding a joint venture partner. 

Alok Agrawal, CEO, ZMCL, said, “We are looking at other options as well. But I can’t tell you more than this. The restructuring exercise is on and we will take a call in the next two to three weeks.”

Hunting for a joint venture partner has been an old exercise. Local politician Satyanarayanan Botsa’s kin was to acquire stake in the channel.

ZMCL, however, had started the process of parting with equity. It had applied to the Information and Broadcasting ministry for transferring the licence.

 “We are still awaiting ministry clearance,” said Agrawal. 

As part of the regulation, licences cannot be sold. ZMCL would have to float a separate company and transfer the licence to this entity. It is in this company that the partner would have held equity along with ZMCL.

Zee Gantalu posted a net loss of Rs. 1.32 million for the fiscal ended 31 March 2013.

Source: http://cablequest.org/news/national-news/item/3473-future-uncertain-for-zee-gantalu.htmlSource: http://cablequest.org/news/national-news/item/3473-future-uncertain-for-zee-gantalu.html