A shocker for incumbent Apple Music, Wqnk, and newly launched Amazon Prime Music. India’s most used music app, Saavn merges with JioMusic, the fastest growing music application.
Reliance Industries Limited has executed definitive agreements for the combination of Saavn, a leading global music OTT platform, with its digital music service, JioMusic. The combined entity is valued at over US$1 billion, with JioMusic’s implied valuation at US$ 670 million. The integrated business will be developed into a media platform of the future with global reach, cross-border original content, an independent artist marketplace, consolidated data and one of the largest mobile advertising mediums.
Integration of Jio Music and Saavn in a transaction valued at over US $1 Billion. Reliance to further invest up to US $100 Million for growth. Saavn founders to drive growth of the combined entity.
Reliance will also invest upto Rupee equivalent of US$100 million, out of which Rupee equivalent of US$20 million will be invested upfront, for growth and expansion of the platform into one of the largest streaming services in the world. The company will continue to operate the over-the-top media platform available on all app stores. The three co-founders of Saavn, Rishi Malhotra, Paramdeep Singh and Vinodh Bhat, will continue in their leadership roles and will drive growth of the combined entity.
In addition, Reliance is acquiring partial stake from the existing shareholders of Saavn for US$104 million, while these shareholders retain their balance stake. The shareholder base of Saavn includes Tiger Global Management, Liberty Media and Bertelsmann among others.
JioMusic has been India’s fastest growing music streaming app for over 60 consecutive weeks. JioMusic has sourced content from all the major Indian and international labels, with over 16 million HD songs across 20 languages. The exhaustive content library, customer experience functionalities and the differentiated Jio digital ecosystem have enabled the rapid growth of the JioMusic platform. Saavn is the only streaming service to make Top Grossing App charts in multiple markets, including India, US, UK, Canada, UAE and Singapore, among others.
Data is the new Oil.
The deal will combine the streaming media expertise of Saavn with the connectivity and digital ecosystem of Jio. With a massive addressable market opportunity of over 1 billion users in India and globally, the combined entity plans to invest aggressively to accelerate growth that would benefit all aspects of the ecosystem, including users, music labels, artists, and advertisers. The combined platform will also build on Saavn’s award-winning Original Programming, Artist Originals (AO), which has re-defined the development, marketing and distribution of original audio content.
“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.” – Akash Ambani, Director, Reliance Jio.
Since the launch, Jio has been growing at tremendous speed with neck-break competition and innovation. They have also partnered with Google India for Google Home Project. Although, we are waiting for the most ambitious announcement from Jio, the JioFiber. With more than 4 lakh kilometers of high-speed fiber optic cable and BharatNet, JioFiber plans to bring 100Mbps broadband internet to every home at affordable rates.
– Chaitanya Kulkarni
Source – Saavn.com