STAR offloads Balaji Telefilms stake

25 August 2008

Mumbai/ Hong Kong - STAR Group (STAR), Balaji Telefilms Ltd. (BTL) and BTL's promoters, have entered into an agreement whereby the parties have agreed to terminate the agreements entered into between them, inter se, dated August 18 2004, in the manner specified in the agreement. As part of this disengagement, the agreements entered into between BTL and STAR, in April 2007, relating to the regional languages joint venture will also be terminated.
Upon such termination, both STAR and BTL will be free from their respective rights and obligations under the said agreements.
The content supply agreements between the two for various shows produced by BTL will be modified to remove the restrictions imposed upon BTL relating to exclusivity on certain prime time slots. All the six existing BTL shows, currently on air with 'STAR PLUS', will continue on terms mutually agreed upon by the two parties. Both parties have also agreed to commence work on a new show to replace an existing show which will be launched before November 30 2008.
Uday Shankar, CEO, 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."