Reliance Industries has confirmed that it will be buying stake in the Indian music service streaming App Saavn. This deal is estimated for around $104 million and all the stocks will be purchased from the respective shareholders.
In a joint statement on Friday, both Reliance and Saavn said that there are plans to invest up to $100 million, $20 million of it upfront, to expand the JioMusic-Saavn combined. The deal will combine the streaming media expertise of Saavn with the connectivity and digital ecosystem of Jio.
Akash Ambani, Director, Reliance Jio, said, “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.”
Reliance Jio has been a roaring success since its launch in September 2016, where it provided discounts and free voice offerings, while expanding its library of films and TV shows.
The combined value of both these companies is estimated at at $1 Bn, out of which Jio Music’s implied valuation is $670 Mn leaving Saavn at a valuation of $330 Mn. There are some major shareholder already in Saavn like Tiger Global Management, Liberty Media and Bertelsmann.