STAR Offloads Stake in Indian Producer

MUMBAI/HONG KONG, August
19: STAR is selling off the 25.99 percent it owns of Indian production house
Balaji Telefilms (BTL), and is terminating its agreement to launch
regional-language channels with the company, known for its string of hit
Hindi-language serials.

BTL’s current owners have
agreed to acquire the stake, held by the STAR affiliate Asian Broadcasting
FZ-LLC. Financial terms were not provided.

Announcing the deal, both
parties stressed that Balaji will continue to provide STAR Indian with content.
However, agreements will be modified to remove the restrictions that prevented
BTL from providing shows to other broadcasters in certain time slots. All six
BTL series currently airing on STAR Plus will continue, and one will be
replaced by a new series before the end of November.

Uday Shankar, the CEO of
STAR India, said, “STAR and BTL have agreed to determine all prior agreements
such that each side is freed from all respective rights and obligations arising
from such agreements. The relationship between STAR and BTL as broadcaster and
content provider will not be affected. The new arrangement allows both parties
to take the best advantage of emerging opportunities in broadcasting and
content creation.”

Shobha Kapoor, the
managing director of BTL, added, “STAR and BTL have enjoyed a successful
relationship over the past few years, one that has been to the mutual benefit
of both. We are keen to continue this relationship in the best spirit going
forward. This agreement with STAR releases BTL from its various obligations and
opens up very exciting opportunities for it. BTL, as the leader in the Indian
television content business, will be able to cater to the wider needs of the
high-growth Indian broadcasting industry. Further, BTL is also exploring
strategic initiatives in various other segments of the Indian media and
entertainment industry.”

—By Mansha Daswani