For Star Group and Balaji Telefilms the kahani is finished and it is official that they have divorced less than 4 years after marriage.

After much speculation Balaji Telefilms, promoted by Jeetendra and Ekta Kapoor, has sent a notice to the Bombay Stock Exchange saying the agreement has been terminated and the promoters would be buying back the 26 per cent stake from Rupert Murdoch’s Star group.

The Rs 1,100 crore Balaji Telefilms will buy back Star's stake at Rs 190 per share or Rs 320 crore. The company has a period of 240 days to do so, else Star can sell it to other investors.

The joint venture formed last year for south India has also been terminated. On his recent visit to India Rupert Murdoch avoided answering the question that is Star negotiating with Asia Net for a bouquet of south channels.

Then one has to ask who's backing Balaji? Where will the promoters get Rs 320 crore?

The answer is private equity, as sources close to the promoters say they are looking to divest just under 15 per cent to PE players and retain control.

Blalaji Telefilms in its reply said: "Star and Balaji Tele has enjoyed a successful relationship over the last few years, one that has been to the mutual benefit of both. We are keen to continue this relationship in the best possible spirit going forward. This agreement with Star releases us from its various obligations and opens up very exciting opportunities for it."

Analysts say this won't really change fortunes for both as content is still going to be shared but not exclusively.

But what’s quite certain is that Balaji promoters will have to raise funds from outside to meet their commitment to buy back 26 per cent.