Bollywood filmmaker Karan Johar at the 69th National Film Awards, Tuesday in New Delhi (Photo: ANI)

Bollywood filmmaker Karan Johar at the 69th National Film Awards, Tuesday in New Delhi (Photo: ANI)

2 minutes reading Last updated: Oct 07, 2024 | 11:13 am IST

Music label Saregama India, owned by RP Sanjiv Goenka, is reportedly in talks to acquire a majority stake in producer Karan Johar’s company, Dharma Productions. Living coin reported on Monday. Sources cited in the report suggested that the deal may not go through and has not yet reached the final stages.

This development comes at a time when box office volatility and rising star prices are making it more difficult for production companies to operate independently, a challenge Dharma Productions also faces. The report added that Dharma Productions has been looking for investments for some time.

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Recent projects from Dharma Productions include Kill, Bad Newz, Yodha and Mr & Mrs Mahi. The Alia Bhatt starrer Jigra will hit the theaters this week. Recently, Johar publicly responded to the “unprecedented” compensation demands of movie stars. On September 24, he revealed in an interview that some lead actors had demanded Rs 40 crore in fees for Kill, which surprised him as that was the entire budget of the film.

The report added that Dharma Productions posted a turnover of Rs 1,044.16 crore in the financial year 2022-23, with a profit of Rs 10.69 crore. Meanwhile, Saregama collected a turnover of Rs 790.3 crore, with a net profit of Rs 185.1 crore.

In September 2023, Saregama acquired a majority stake in digital entertainment company Pocket Aces Pictures, buying 51.8 percent for Rs 174 crore. Saregama plans to acquire an additional 41 percent stake in the company in the future.

The Covid-19 pandemic has been cited as one of the reasons for the poor box office performance in recent years. Extended lockdowns, combined with the rise of cost-effective streaming platforms, have changed the way people consume content.

First publication: Oct 07, 2024 | 11:12 am IST