Reliance Jio Music – Saavn Merger: Last week, Reliance Jio announced that it was combining its OTT platform Jio Music with Saavn, a global music and audio streaming service, creating a new entity. Reliance Industries has signed a pact to buy out Saavn music app for $104 million in cash and rest in stock, to merge it with its own digital music service JioMusic, valuing the combined music platform at about $1 billion.
In this deal between Jio and Saavn, Mukesh Ambani owned company will hold roughly three-fourths of the merged entity, with JioMusic’s implied valuation at $670 million. Reliance will also invest up to Rupee equivalent of $100 million for growth and expansion of the platform into one of the largest streaming services in the world. Of this, Rupee equivalent of $20 million will be invested upfront.
Now, saying this, the competition which India has in the online music streaming is pretty less as there are only three major platforms which are Saavn, Gaana and Apple Music. Now, there are more companies which are planning to enter the competition which includes the e-commerce giant Amazon. The company has launched Amazon Prime Music earlier in March and also giving away free trial period of 60 days for all Prime Members.
“The investment and combination of our music assets with Saavn underlines our commitment to further boost the digital ecosystem and provide unlimited digital entertainment services to consumers over a strong uninterrupted network. We are delighted to announce this partnership with Saavn, and believe that their highly experienced management team will be instrumental in expanding Jio-Saavn to an extensive user base, thereby strengthening our leadership position in the Indian streaming market” said Akash Ambani, Director, Reliance Jio, who is said to have driven the deal.
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