Reliance Industries Limited has merged its JioMuisc digital platform with leading South Asian streaming service Saavn.
The integrated business will be developed into a media platform with global reach. The combined entity is valued at over $1 billion.
Indian giant Reliance will invest up to $100 million for growth and expansion of the platform. The three co-founders of Saavn – Rishi Malhotra, Paramdeep Singh and Vinodh Bhat – will continue in their leadership roles.
In addition, Reliance is acquiring a partial stake from the existing shareholders of Saavn for $104 million. 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. It has sourced content from all the major Indian and international labels, with more than 16 million songs across 20 languages.
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.”
Rishi Malhotra, co-founder and CEO at Saavn, said: “Nearly 10 years ago, we had a vision to build a connected music platform, dedicated to South Asian culture across the globe. Vin, Param and I always envisioned the company for the long term with intense focus on products, data, and ground-breaking original content. Our alignment with Reliance enables us to create one of the largest, fastest-growing, and most capable media platforms in the world.”
PHOTO: (L-R) Paramdeep Singh – co-founder and executive vice chairman, Saavn, Rishi Malhotra, co-founder and CEO, Saavn, Vinodh Bhat, co-founder and president, Saavn
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