Earlier this week, Karan Johar announced that his banner Dharma Productions had acquired Cornerstone Sport and Entertainment’s stake in Dharma Cornerstone Agency (DCA), which used to be a joint venture between the filmmaker and talent manager Bunty Sajdeh. This marked the professional separation between the duo after a five-year run. Soon, Sajdeh’s Cornerstone partnered with Armour Entertainment to form CXA, a talent management agency.

Meanwhile, Johar — in whose banner pharma tycoon Adar Poonawalla acquired a 50 per cent stake, in October 2024 — rebranded his talent agency as Dharma Collab Artists Agency (DCAA).

Talking to mid-day, Sajdeh said that the split with Johar was amicable. “It was a circumstantial decision made in lieu of a large investment made in Dharma Productions last year that needed their ancillary businesses to be integrated with the parent company. So, Karan and I decided to part ways since Cornerstone is an independent entity. I prefer it to remain just that. We will now coexist in the industry as separate entities,” said Sajdeh, who has over two decades of expertise in celebrity management, and had Virat Kohli and K L Rahul among his clients.

When announcing the split, Johar penned a note on Instagram explaining his decision. He wrote, “Dharma took a major step by selling stake and creating a large entertainment conglomerate. That move needed us to integrate all our verticals under one large umbrella. Bunty and I mutually agreed to part ways and yet keep our strong friendship and equation exactly the way it’s always been.”

When Sajdeh and Johar formed DCA in 2020, the talent agency became one of the leading players in the film business.

Sharing that collaborating with the multi-hyphenate influenced him deeply, Sajdeh said, “I have learned so much from Karan professionally — people skills for one. Time management is another art I need to master from him. He will continue to be my close friend, and I know he will be there for me.”

Now Sajdeh’s focus is on building CXA with Prarthana Ajmani. “Since DCA has been acquired by Dharma, they get complete ownership of all assets. CXA will provide a 360 degree approach to acquisition and servicing of films, brands, and events.”

Mumbai: Dharma Cornerstone Agency, the joint venture between Karan Johar’s Dharma Productions and Bunty Sajdeh’s Cornerstone Sport and Entertainment, has been restructured, with the two partners opting to pursue independent strategies, according to people aware of the development. The split has been amicable, they said.

As part of the restructuring, Dharma is buying out Cornerstone’s 45% partnership interest in the talent management LLP. With this acquisition of Cornerstone’s entire contribution and economic rights, Dharma will assume full control and ownership of the limited liability partnership, the people said.

Financial terms of the arrangement weren’t available.

The agency represents actors including Janhvi Kapoor, Sara Ali Khan and Tiger Shroff. The talent roster currently housed under the venture is expected to remain with Dharma, which will continue to manage ongoing and upcoming engagements, the people said.

ET could not independently confirm details of the internal arrangements with artists.

The joint venture reported a turnover of Rs 110 crore for FY25, compared with Rs 77 crore in FY24. Net profit at Rs 12 crore was marginally lower than the Rs 14 crore the previous year.

The venture was set up in 2020 with the objective of supporting emerging and established talent by combining Dharma’s content and production ecosystem with Cornerstone’s expertise in talent representation. With full ownership of the agency, Dharma is expected to build a more integrated talent strategy that aligns management, training and development with its film and digital content pipeline, industry executives said.

Dharma Productions chief executive Apoorva Mehta and Cornerstone’s Sajdeh declined to comment.

Executives tracking the sector said consolidation within the talent vertical can enable tighter alignment across casting, long-term career planning and brand strategy at a time when the creator economy and influencer-led IP continue to expand.

Cornerstone will continue to operate independently through Cornerstone Sport and Entertainment, the people said. The company plans to scale its presence across sports, entertainment and digital talent. It manages K L Rahul, Sidhant Chaturvedi, Sania Mirza and Manu Bhaker among others.

People familiar with the matter said the split is cordial and reflects the strategic priorities of both entities as they refine their long-term plans. The people they manage have been informed of the development and Dharma is expected to continue honouring existing contracts and commitments, they said.

The restructuring comes at a time when India’s entertainment landscape is undergoing rapid transformation driven by streaming expansion, social media, and the growth of sports-led intellectual property. The move positions both Dharma and Cornerstone to respond more effectively to emerging commercial opportunities.

The development also coincides with a broader internal consolidation at Dharma. Dharmatic Entertainment, its digital arm, has been merged into the parent entity following Adar Poonawalla’s acquisition of a 50% stake in Dharma for Rs 1,000 crore. The merger, effective April 1, 2025, was aimed at streamlining operations and preparing the studio for its next growth phase.