STAR has ended its partnership with Balaji Telefilms Ltd. On August 18, Balaji Telefilms and STAR mutually decided to terminate the various agreements entered into between them in August 2004 in relation to the acquisition by ABF (Asian Broadcasting FZ-LLC) of a total of 25.99% of the share capital in Balaji Telefilms.
The agreements entered into between Balaji and Star, in April 2007, relating to the regional languages joint venture will also be terminated now. In a statement to Bombay Stock Exchange, Balaji stated, "Pursuant to the agreement, the promoters are entitled to purchase, on their own account and / or through third, party(ies) nominated by them, the entire shareholding held by ABF in the Company. If the purchase does not take place within the prescribed period, ABF is entitled to sell its shares in the Company to any person other than a competitor of the Company."
The content supply agreements between Star and Balaji for various shows will be modified to remove the restrictions imposed upon Balaji relating to exclusively on certain prime time slots. The six existing shows that it currently produces for STAR Plus will continue on terms mutually agreed upon by the two parties.
"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," said Uday Shankar (pictured), chief executive officer, STAR India.
