Renowned music label Saregama is reportedly in talks to acquire a majority stake in Karan Johar‘s Dharma Productions, according to three insiders familiar with the matter.
Will Karan Johar’s Dharma Production Seal The Deal With Saregama?
Though discussions are ongoing, the deal has not yet reached its final stages, and there is a possibility that it might not materialise, they stated under anonymity.
According to a Mint report, the volatility of the box office, reduced reliance on satellite and digital rights, and rising star fees have made it increasingly challenging for independent production houses like Dharma to thrive, the sources said.
Dharma Productions, which has been seeking investment for some time, has been in talks with various conglomerates and industrialists to secure funding.
Meanwhile, Saregama, which already holds a majority stake in Pocket Aces Pictures, is looking to bolster its content and film portfolio. While Saregama did not comment on the matter, and Dharma remained unresponsive, the deal could represent a strategic opportunity for both parties.
“Saregama has been betting aggressively on content over the past few years, but it hasn’t really been able to make a mark as far as movie or OTT production goes. That said, thanks to its music catalogue, the company enjoys high valuation and has the wherewithal to acquire a stake in one of the top film production houses in the country,” one of the insiders explained.
How Will It Benefit Both Of Them?
The person further noted that acquiring a stake in Dharma Productions could help Saregama leverage Dharma’s extensive industry relationships and its ability to assemble projects featuring top stars.
“Given that nobody other than Jio Studios is really green-lighting new films right now, it’s a good time for a new player to partner with producers like Dharma. Their strong reputation ensures that post-theatrical OTT deals will be easily secured,” they added.
Dharma Productions reported a revenue of Rs 1,044.16 crore in FY23, with a profit of Rs 210.69 crore, according to financial data from Tofler. Saregama, in the same year, posted a revenue of Rs 690.3 crore, with a net profit of Rs 185.1 crore.
One source commented on the challenging landscape for film producers post-pandemic, adding that it might make sense for Dharma to join a larger, cash-rich network.
“They don’t have the scalability of a listed company. Even though Dharma has several projects in production, some recent films haven’t performed well at the box office,” the source added.
Dharma Productions has released films such as Kill, Bad Newz, Yodha, and Mr & Mrs Mahi in recent months. Their latest, Jigra, starring Alia Bhatt, is set to hit cinemas this week.
(Also read: Here’sHow Karan Johar’s Dharma Productions Is Paving The Way For South Indian Films To Reach Wider National Audience!)
Stay tuned with us for latest news, Hindi box office news, Hollywood news, OTT news, latest bollywood news and latest box office news.
