Star India has exited from its home shopping joint venture Star CJ Network India Ltd by selling its 50% stake to the private equity firm Providence Equity Partners for an undisclosed amount, reports PTI.
While the terms of the deal were not disclosed, Star CJ has informed that it will continue using the Star CJ brand for 12 months, following which it will be rebranding the company.
Star India had earlier formed a 50:50 joint venture with South Korean firm CJ Shopping to launch Star CJ Network in March 2009. Both the companies have reportedly invested $55 million in the venture. It started off as a six hour slot on Star Utsav channel and later launched a 24-hour channel Star CJ Alive in 2010.
It also launched an online marketplace StarCJ.com in February 2011, allowing third party sellers to offer products across various categories like electronics, fashion, kitchen, home decor, jewelry and furniture among others. The company had apparently reported a total sales of around $101 million in the previous year.
HomeShop18 IPO: This move comes at a time when Star CJ Network’s competitor HomeShop18 has filed for a $75 million IPO at the New York Stock Exchange, via its venture NW18 HSN holding. Earlier this month, HomeShop18 CEO Sundeep Malhotra had informed that the IPO is still on track, despite Reliance Industries’ acquisition of Network18.
Interestingly, CJ Shopping is positioning this deal with Providence as a growth opportunity for Star CJ Network to take on HomeShop18. It’s worth noting that Providence had also acquired a majority stake in the German home shopping venture Home Shopping Europe (HSE24) from AXA Private Equity in July 2012.