(MENAFN- NewsBytes)
JioMusic integrates with Saavn, combined entity worth a billion dollar
23 Mar 2018
In an unexpected move, Reliance has announced that it will integrate its music-streaming service, JioMusic with Saavn.
The combined entity, created through this merger, has been valued at $1 billion, making it India's newest unicorn.
Reliance Industries will also invest $100 million to fuel growth of the company.
This news comes weeks after Chinese giant Tencent invested in another Indian streaming service, Gaana.
Saavn: One of India's biggest streaming services
Fact
Saavn is one of India's biggest music streaming companies. It was founded by Rishi Malhotra, Paramdeep Singh and Vinodh Bhat. The prominent investors of the company include Tiger Global, Bertelsmann, Steadview Capital and Liberty Media. Saavn's android app has 50+ million downloads.
Details about the combined entity
Details
With this deal, Reliance and Saavn want to build the world's largest music streaming service. The rationale is to merge the technology of Saavn with Jio's ecosystem.
The founders of Saavn will continue in the leadership roles.
As per the reports, Reliance is acquiring stake worth $104 million from the existing shareholders of Saavn. For this transaction, JioMusic has been valued at $670 million.
Jio aims to provide better entertainment services to consumers
Fact
"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," said Akash Ambani, Director of Reliance Jio.
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