Zee may divest 20% in OTT biz; eyes music, gaming segments to take on Jio

Zee has already put together an aggressive strategy to take on its rival Reliance Jio

Zee Entertainment Enterprises might spin off its over-the-top (OTT) entertainment streaming channel, Zee5, into a subsidiary or a step-down subsidiary, in which it might offer up to a 20 per cent direct stake to a global strategic investor, said sources in preliminary discussions with the group.

The investor will also be offered up to 20.8 per cent in Zee Entertainment, or half of what the promoters own in the listed company, as announced last week.

The logic behind such a move is that a potential investor, by taking a stake directly in the proposed Zee5 subsidiary and indirectly through Zee Entertainment, could