Reliance Industries Ltd. (RIL) is reportedly in discussions to acquire a stake in Karan Johar’s Dharma Productions, as per a recent Economic Times report. This potential deal could strengthen Reliance’s position in India’s entertainment sector, adding to its already substantial portfolio, which includes Jio Studios and Viacom18 Studios.
Dharma Productions, owned largely by Karan Johar (90.7%) and his mother, Hiroo Johar (9.24%), is actively seeking strategic partnerships. The Bollywood film industry has been grappling with rising production costs, declining cinema attendance, and the rapid rise of over-the-top (OTT) platforms, all of which have put pressure on traditional studios. These challenges have prompted the need for fresh investments to sustain operations and drive future growth.
Karan Johar has been exploring ways to monetize his stake for some time, but previous attempts have fallen through due to issues surrounding valuation. Reliance, with its growing interest in media investments, could be the right partner. The company has previously acquired a minority stake in Balaji Telefilms and may pursue a similar arrangement with Dharma Productions. RIL’s current media holdings are impressive, including Jio Studios, Viacom18 Studios, Colosceum Media, and its stake in Balaji. In the fiscal year 2024, Jio Studios earned ₹700 crore in box office collections, with films like Stree 2 becoming top performers.
Amid the post-pandemic financial strain, many production houses are now considering fundraising efforts. Analysts believe that a stake sale could help Dharma Productions transition from a personality-driven business to a more professionally managed company, a shift that is seen as crucial for long-term stability in the entertainment industry.
In another development, Dharma Productions was recently reported to be in discussions with Saregama, a music and entertainment company backed by entrepreneur Sanjiv Goenka, for a potential majority stake sale. However, Saregama, in a stock exchange filing on October 8, stated that there were no significant updates on these discussions, suggesting that the negotiations are still at an early stage.
This potential partnership between Reliance and Dharma Productions could mark a major shift in the Bollywood landscape, with Reliance looking to expand its influence in the entertainment sector amid the booming OTT market.
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