Star India exits home shopping joint venture Star CJ Network
06 Jun 2014
Media and entertainment firm Star India on Thursday announced its exit from an equal partnership in the home shopping venture, Star CJ Network, by sale of its entire stake to private equity firm Providence Equity Partners, for an undisclosed amount.
Star Home Shopping Ltd, an affiliate of Star India, sold its 50-per cent stake in television shopping company Star CJ Network India Pvt Ltd to Providence Equity Partners, the companies said in a statement on Thursday.
Star CJ Network is a 50:50 joint venture with Korea's CJO Shopping - the world's second largest home shopping network.
Star India held its stake in the portal through India-Star HS.
Star CJ operates a 24x7 home shopping channel called 'Star CJ Alive' through www.starcj.com to third-party sellers, who list their products for sale, reaching out to over 50 million households. The company claims to have added 5 million shoppers to its network within four-and-a-half years of its operation.
Star CJ will continue to use Star's brand for up to one year.
Providence Equity Partners is focused on media, communications, education and information investments. The firm manages $40 billion and has invested in over 140 companies globally since its inception in 1989.
It is also a controlling shareholder in HSE24, a leading home shopping network in Germany.
"Providence is excited about partnering with CJ O Shopping, a global leader in TV home shopping. The significant TV home shopping market opportunity in India, Star CJ's strong management team and CJ's deep domain expertise, all make this a compelling opportunity for us."
"We look forward to working with the Star CJ team and adding lasting value to the company in the years ahead," Providence India managing director Biswajit Subramanian said.