Punit Goenka, managing director and chief executive of Zee Entertainment Enterprises Ltd (ZEEL), has acquired a majority stake in entertainment company Maverick Media. This investment, made in his capacity, aims to revitalize single-screen cinemas across India, particularly in tier-II and tier-III cities.
In a statement released on Monday, Goenka emphasized that this move is independent of his professional commitments to Zee Entertainment. “While my professional commitments continue to remain a priority, I believe that as key members of the fraternity, it is our collective responsibility to enhance the growth opportunities for all segments in the media value chain, and hence I have taken this decision in my capacity,” he said.
Reviving Single-Screen Cinemas
The initiative targets under-screened markets, addressing the decline of single-screen cinemas exacerbated by the COVID-19 pandemic. Trade experts estimate that 1,500-2,000 single screens shut down during the pandemic. Goenka believes in the immense potential of single-screen cinemas and sees this investment as an opportunity to rejuvenate this segment.
“I am confident in the ability of the team at Maverick to achieve its vision and grow the single-screen cinema business. I truly hope this step enables an economically viable opportunity for cinema exhibition operators across key growth markets in the country,” Goenka added.
Context of Zee's Corporate Changes
This personal investment by Goenka comes amidst significant changes at Zee Entertainment. Following the failed merger with Sony Pictures Entertainment in January, ZEEL has been on a cost-cutting spree. The company announced a 15% reduction in overall headcount and a 20% cut in Goenka’s remuneration. Additionally, several senior executives have exited the company, including CHRO Animesh Kumar, CFO Rohit Gupta, and others.
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Goenka’s family owns a 4% stake in ZEEL, a company founded by his father, Subhash Chandra. Despite the corporate challenges, Goenka's personal venture into single-screen cinemas highlights his commitment to the broader media industry.
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