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MUMBAI
: Balaji Telefilms has snapped ties with Rupert Murdoch's
Star Group. The Star Group held 25.99 per cent stake in Balaji
Telefilms via Asian Broadcasting FZ LLC.
"The
agreements entered into between Balaji and Star in April 2007
relating to the regional languages joint venture will also
be terminated," says a Balaji statement.
Under
the termination agreement, Balaji's promoters will buy the
entire 25.99 per cent stake held by Asian Broadcasting at
Rs 190 per share each within 240 days, failing which Star
would be free to sell it to any other entity except a competitor.
In
2004, Asian Broadcasting had paid Rs 90 per share to buy 21
per cent stake in Balaji Telefilms. It subsequently made an
open offer to take its stake to 25.99 per cent.
Star
India CEO Uday Shankar 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.”
An
official statement says that the content supply agreements
between Star and Balaji for various shows produced by it will
be modified to remove the restrictions imposed upon Balaji
relating to exclusivity on certain prime time slots.
The
six existing shows produced by Balaji and are currently on
air with the Hindi general entertainment channel Star Plus,
will continue on terms mutually agreed upon by the two parties.
The
content provider company will produce a show for Star Plus
to replace an existing show before 30 November.
Balaji
Telefilms MD Shobha Kapoor said, “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.”
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