Dharmatic Entertainment merges with Dharma Productions to cut costs
**Dharmatic Entertainment Merges with Dharma Productions to Cut Costs**
*By Apoorva Rastogi | October 4, 2025, 5:16 PM*
Karan Johar’s Dharma Productions, one of Bollywood’s leading film production companies, has announced the merger of its digital arm, Dharmatic Entertainment, into the parent company. The merger will be effective from April 1, 2025, marking a strategic move to streamline operations and reduce overheads amid the evolving entertainment landscape.
According to *The Economic Times*, the fast-track merger application has received approval from the shareholders and creditors of both companies. This development follows Dharma Productions’ significant sale of a 50% stake to entrepreneur Adar Poonawalla last year for ₹1,000 crore, which valued the company at ₹2,000 crore.
The merger is aimed at enhancing operational efficiency by simplifying the group’s structure, cutting administrative costs, and easing legal compliance. Since Dharmatic Entertainment is already a wholly-owned subsidiary of Dharma Productions, no financial transaction will take place during this merger. Additionally, the existing stake held by Dharma Productions in Dharmatic will be extinguished as part of the consolidation.
A company official shared insights with *The Economic Times*:
“Dharmatic was envisioned as a digital-first creative studio, but the industry has evolved in ways that make integrated operations more impactful. This merger allows us to optimize resources and run a leaner, more efficient organization while continuing to tell powerful stories across platforms.”
Launched in 2018, Dharmatic Entertainment has produced popular digital shows like *The Fame Game* and *Koffee with Karan* for Netflix and JioHotstar, respectively. The merger signifies Dharma Productions’ commitment to adapting its business model in a rapidly changing media environment.
https://www.newsbytesapp.com/news/entertainment/dharma-productions-merges-with-dharmatic-entertainment/story
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