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Karan Johar: Star Equity Explained
28 Feb
Summary
- Celebrity equity in brands varies by partnership stage.
- Early involvement in a brand warrants a larger ownership stake.
- Realistic equity for stars is typically 10-25%, rarely higher.
Filmmaker Karan Johar has offered insights into the business of celebrity entrepreneurship, particularly focusing on equity structures in brand partnerships. He stressed that the percentage of ownership a star receives is highly dependent on their involvement level and the brand's stage of development.
Johar elaborated that celebrities who contribute from the outset of a brand's creation, investing time and energy, should be granted substantial equity. Conversely, those joining already successful ventures typically receive sweat equity or a smaller percentage. He cited examples like Alia Bhatt's involvement with Edamama and Ranveer Singh's with Super You as instances where early-stage collaboration merits a larger share.
Discussing realistic equity ranges, Johar stated that stakes can vary from 10% to 25%, rarely exceeding 30%. He questioned the rationale behind 50% stakes, as it could undermine the founder's contribution. Johar also mentioned his own discreet equity holdings in businesses that align with his personal brand, underscoring that each deal is unique and contingent on individual circumstances.
