Karan Johar calls himself a ‘worst negotiator’, says he doesn’t regret selling 50% stake in Dharma: ‘I know that 50 will come back as 1500’

Karan also recalled the uncertainty he felt after his father’s death in 2004. “My father, who passed away in 2004, was a film producer. I’ve learned all my mantras of life, all my philosophies, and everything I know about living a life within the movie business from him. But when he passed away, I was a little lost, I don’t have siblings, and there wasn’t family who could help me run this. So, I called on Apoorva, who left his job and business in London and moved back to India. From then on, it’s been 20 years of us working together, 20 years of building Dharma Productions and creating it into what it is today.”

Taking over the reins from his father, Karan Johar elevated Dharma Productions to the next level, backing a string of successful films including Dostana, Wake Up Sid, Agneepath, Yeh Jawaani Hai Deewani, Kapoor & Sons, among several others. However, in 2024, Karan sold 50% stakes to Adar Poonawalla’s Serene Productions, which entered into a binding agreement to invest Rs 1,000 crore into Dharma Productions and Dharmatic Entertainment. Following the deal, Karan retains the remaining 50% ownership, valuing the company at Rs 2,000 crore. Speaking to Curly Tales about the sale, he said: “Not at all. It was the right decision for growth too, because I knew that 50 crore would become 1,500 crore if I had that 50% investment. I knew what I could do with that investment, how I could grow and take my company in a much more forward-moving direction.” He added candidly about his negotiating skills, or lack thereof: “I’m the worst. I should never be in the negotiation room because I’ll always give up more and receive less.”

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The past few years had indeed been challenging for Dharma Productions. As per Campaign India, in FY23, its net profit declined by 59% to Rs 11 crore, according to financial data from Tofler. This drop was attributed to a sharp rise in expenses, which surged to Rs 1,028 crore. That year, Dharma co-produced Ayan Mukerji’s Brahmastra, which grossed around Rs 420 crore against a budget of Rs 400 crore.

Karan, speaking at the CNBC-TV18 Global Leadership Summit, had previously highlighted the challenges of tentpole films. “It’s the middle-budget film, where the cost to profit is super high. Those are the films that you can fund entirely on your own, and you can enjoy and reap the benefits of the big breakthrough profits. I believe the real bread and butter, the real money comes from middle-budget film,” he said.