Reliance Industries (RIL) today signed definitive agreements for combining online music streaming platform Saavn with JioMusic and the combined entity is valued at more than $1 billion, with JioMusic’s implied valuation at $670 million.
As per the media reports, the integrated business will be developed into a media platform with global reach, cross-border original content, an independent artist marketplace, consolidated data and one of the largest mobile advertising mediums.
RIL will be 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.
RIL will also invest up to $100 million for growth and expansion of the platform. 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. JioMusic, Jio’s music streaming service, has content from all the major Indian and international labels, with over 16 million HD songs across 20 languages.
Founded in 2007, Saavn is the only streaming service to make top grossing app charts in multiple markets, including India, the US, the UK, Canada, the UAE and Singapore.