Dharma sold for 600 cores?! - Page 2

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bips thumbnail
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Posted: 2 days ago
#11

When someone buys dharma, what exactly are they buying?


The land, physical office

Rights to old movies

Rights to any new movies signed

The name, goodwill (how much is THIS really worth)


Bec dharma is barely making any profits. I'm just wondering if the buying company might be better off setting up a new production house and poaching dharmas employees... why waste so much money in a sinking ship? Anyone knows??

BhataktiJawani thumbnail
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Posted: 2 days ago
#12

I hope KJO goes bankrupt. Can’t stand him & Alia smiley11

MostlyHarmIess thumbnail
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Posted: a day ago
#13

Originally posted by: bips

When someone buys dharma, what exactly are they buying?


The land, physical office

Rights to old movies

Rights to any new movies signed

The name, goodwill (how much is THIS really worth)


Bec dharma is barely making any profits. I'm just wondering if the buying company might be better off setting up a new production house and poaching dharmas employees... why waste so much money in a sinking ship? Anyone knows??

They buy all of that, but I am assuming they are only interested in the content library. They will probably sell whatever physical assets they have.

The Dharma name, I am not sure will survive a merger with Jio. Saregama will probably keep it. I wouldn't be surprised if Karan asks for a clause to force the buyer to keep the Dharma branding for a certain amount of time.

IAmLuvBolly thumbnail
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Posted: a day ago
#14

Originally posted by: bips

When someone buys dharma, what exactly are they buying?


The land, physical office

Rights to old movies

Rights to any new movies signed

The name, goodwill (how much is THIS really worth)


Bec dharma is barely making any profits. I'm just wondering if the buying company might be better off setting up a new production house and poaching dharmas employees... why waste so much money in a sinking ship? Anyone knows??


More than likely the rights to everything Dharma has, old and new. They’re basically buying all of Dharma’s intellectual property, and maybe even the physical property if it belongs to Dharma the production house. The smaller details would depend on whatever agreement they reach behind the scenes. And depending on these contracts and decisions they might even acquire future decision making and creative control abilities.

Here’s my question though, isn’t 600 crores too low for an entire production company?

As much as I can dislike KJo I also can’t help but feel bad for him. This was his father’s company and it can’t be easy for him to lose it like this. And I’m sure deep down he knows his own decisions caused this.

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Posted: a day ago
#15

Originally posted by: IAmLuvBolly


More than likely the rights to everything Dharma has, old and new. They’re basically buying all of Dharma’s intellectual property, and maybe even the physical property if it belongs to Dharma the production house. The smaller details would depend on whatever agreement they reach behind the scenes. And depending on these contracts and decisions they might even acquire future decision making and creative control abilities.

Here’s my question though, isn’t 600 crores too low for an entire production company?

As much as I can dislike KJo I also can’t help but feel bad for him. This was his father’s company and it can’t be easy for him to lose it like this. And I’m sure deep down he knows his own decisions caused this.

Didn't the Saregama report originally say he was selling a majority stake. That would at best put the valuation at 1200 crore at best. I am assuming Jio and Saregama would do some sort of bidding and drive up the price.

Dharma annually does what 1000 Crore in revenue? Assuming a 20% EBITDA ratio, that's definitely a terrible multiplier, but the whole thing screams fire sale, so he is probably desperate.

Jaitreya23 thumbnail
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Posted: a day ago
#16

The media reports that Reliance is interested in buying stake so it may not be majority holding.

And Reliance is only interested in buying the copyrights and the content library which will boost Jio Cinema.

KJo would want to keep some stake in memory of his father. It's his over confidence and snobbish attitude that lead to his downfall. If indeed KJo loses Dharma as a majority stake holder then it's another indication of Alia's downfall from prime position.

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Posted: a day ago
#17

Originally posted by: IAmLuvBolly

As much as I can dislike KJo I also can’t help but feel bad for him. This was his father’s company and it can’t be easy for him to lose it like this. And I’m sure deep down he knows his own decisions caused this.

I don't think he's that self-aware. The credit I will give him is that while it was his father's company, Dharma was not really a household name or a serious production company under his father's management. It wasn't until KJo took over with KKHH, K3G, and KHNH (all in his father's lifetime), that Dharma became the brand it was. It was KJo who built up Dharma but it was also him who destroyed it.

He did say previously that the studio's biggest hits were those first three films of his. But I think he should also see the common denominator in those films (SRK and to a lesser extent Kajol). Dharma was synonymous with SRK and for some films, Kajol as well. When Dharma stopped casting these two (or any of SRK's classic heroines like Preity and Rani), we saw the company's fall from grace. Everything since MNIK has been a decline with only Yeh Jawani Hai Deewani being a success.

KJo should look back at his early promise never to make a movie without SRK. His films and company were fine until he broke that promise starting with SOTY. SOTY is where everything went wrong from the lack of SRK to especially the debut of an uninspiring new actress.

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Posted: a day ago
#18

Originally posted by: Clochette

My feeling is completely different...

I cannot mourn because the Dharma we all grew up with and actually cared for ended after MNIK. It has not existed for more than a decade now. There are only a scattering of films that have worked since then, but very few. Most of it was garbage particularly the SOTY films.

Rocky aur Rani was the closest Dharma came to achieving its old magic but the controversy over letting the miscast lead actress take all the accolades has ruined even that. Rocky aur Rani had the starpower from the director and lead actor but needed a lead actress to match its energy, whether Deepika, Katrina, or Anushka.

When SRK was cast in the Dharma movies, he was always given a top heroine who was fully his match, whether Kajol, Preity, or Rani. Those films would not have worked if he had a Twinkle Khanna or Kareena Kapoor as his actress.

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Posted: a day ago
#19

Originally posted by: RaniPreityAish

I don't think he's that self-aware. The credit I will give him is that while it was his father's company, Dharma was not really a household name or a serious production company under his father's management. It wasn't until KJo took over with KKHH, K3G, and KHNH (all in his father's lifetime), that Dharma became the brand it was. It was KJo who built up Dharma but it was also him who destroyed it.

He did say previously that the studio's biggest hits were those first three films of his. But I think he should also see the common denominator in those films (SRK and to a lesser extent Kajol). Dharma was synonymous with SRK and for some films, Kajol as well. When Dharma stopped casting these two (or any of SRK's classic heroines like Preity and Rani), we saw the company's fall from grace. Everything since MNIK has been a decline with only Yeh Jawani Hai Deewani being a success.

KJo should look back at his early promise never to make a movie without SRK. His films and company were fine until he broke that promise starting with SOTY. SOTY is where everything went wrong from the lack of SRK to especially the debut of an uninspiring new actress.

KJo lost his mind thinking he is a kingmaker and started believing his own hype. He thought he will create his own stars and have them working underneath him like those old Hollywood studio systems of the 1930s and 40s. I don't know why he expanded so quickly - he was making like 10 movies a year and even started a talent management company Dharma-Cornerstone during the pandemic.

Producers usually never lose money even from flops because you can recoup it back through streaming, satellite and music rights. I don't know how it makes any sense that he's having so much financial trouble.

Even now, why can't he sell 49% and keep the majority stake and the power in his own hands? That would free up money for him to make more movies.

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Posted: a day ago
#20

Originally posted by: Jaitreya23

The media reports that Reliance is interested in buying stake so it may not be majority holding.

And Reliance is only interested in buying the copyrights and the content library which will boost Jio Cinema.

KJo would want to keep some stake in memory of his father. It's his over confidence and snobbish attitude that lead to his downfall. If indeed KJo loses Dharma as a majority stake holder then it's another indication of Alia's downfall from prime position.

You are underestimating Alia. The only one who has benefitted from the KJo alliance is her. Look at his own state where he's close to selling his company for pennies. Not only did she get big movies directly through Dharma like Student of the Year, Raazi, Dear Zindagi, etc, she also got him to go around making audition tapes like Kalank so she can grab a Bhansali movie, had him calling Zoya Akhtar because she didn't like how Zoya was treating her, had him recommend her for Highway and whatnot.

His obsession for Aloo beti and her husband had him pump in huge amounts for his biggest disaster ever - Brahmastra- which took like 7 years to make by lackadaisical Ayan.

KJo has gained nothing out of his alliance except disrepute and mocking and loss in public sympathy. And Alia has flounced away having landed a YRF spy universe movie and her 2nd Bhansali movie. She also has Ranbir living in her house and can get him to do a movie with her occasionally if nothing else is worthy. She will be perfectly fine.

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