ZEE Network asks for more time on Ten Sports

ZEE Network has asked Dubai-based Taj TV (owners of Ten Sports) for a one-month extension of a deadline to acquire a higher stake in its channel Ten Sports.

According to a report on Business Standard and sources close to the development said ZEE Network had the option of increasing stake by October-end at the 2006 valuation. ZEE executives, however, have requested an extension till the end of November.

ZEE Network, which holds half the company’s shareholding, might raise its stake to either 90 per cent or buy out Taj TV’s 50 per cent stake. ZEE Network bought its stake in Ten Sports three years ago, based on the company’s valuation of over Rs 500 crore.

“If ZEE Network fails to buy the remaining stake by the end of November, then it will have to buy the stake at a valuation suggested by Taj TV, which is likely to be higher than the 2006 valuation,” added the source.

ZEE and Taj TV have been in talks for a while now but discussions were stuck over valuation. “ZEE would like Taj to retain 5 to 10 per cent, since Taj has contacts with the west Asian cricket boards,” added a source close to the development.

Asked about the talks, ZEE Sports CEO Atul Pande said via a text message, “We own 50 per cent in Ten Sports and it is a partnership we are proud of. Ten Sports forms a key part of the ZEE portfolio on the go-to-market and distribution side and we continue to drive the business aggressively behind our strategic sports initiatives. We are also looking to expand the bouquet by adding more specific sports-dedicated channels and programming.”

He did not, however, confirm whether ZEE is close to increasing its stake in Ten Sports. Several attempts to contact Puneet Goenka, CEO, ZEE Entertainment Enterprises, failed.