We must take a relook at the way we are functioning, says Zee chairman

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₹425 crore in merger-related expenses. Additionally, we had to close some channels that were generating revenues for us. In that sense, the merger prevented the company from realizing its full potential during the interim period," Gopalan told Mint in an interview on Wednesday.

On January 22, SPNI sent a termination notice to ZEEL, calling off the merger that was announced more than two years ago, despite the merger receiving all regulatory approvals. While SPNI cited unmet merger conditions, leadership issues also contributed to the fallout. However, post-merger fallout, Gopalan and the company's board have taken a more active role in the company's operations, engaging with analysts and investors.

The board has also established an Independent Investigation Committee (IIC) to probe allegations against the company, its Key Managerial Personnel (KMP), and its promoters. “There were numerous rumours circulating in the public domain, which were incorrect, mischievous, and motivated. The best way to address these issues was to initiate an independent investigation into the allegations raised by regulatory agencies against promoters, KMPs, and the company itself," Gopalan said.

“The IIC has begun its work and will delve into the facts of the allegations, striving to provide clarity and transparency. While this process may not yield immediate results, it is crucial for enhancing organizational transparency and governance." Regarding Zee’s future, Gopalan emphasized the company’s strength in content creation and dissemination. “We felt that there must be some kind of relook at the entire way we are functioning and the MD (Punit Goenka) has proposed a plan for this.