Reliance Industries Limited has announced an agreement to integrate its music streaming platform JioMusic with Saavn, a leading music streaming service. The combined entity is valued at over $1 billion with JioMusic being valued at $670 million. In addition to the integration, Reliance Industries will invest $100 million to fuel growth of the combined entity.
Reliance Industries says it will invest rupee equivalent of $20 million up front for growth and expansion of the platform. The goal here is to turn the combined entity into one of the largest streaming services in the world. The company will continue to operate Saavn as an over-the-top music streaming platform on all major app stores.
Rishi Malhotra, Paramdeep Singh and Vinodh Bhat will continue in their leadership roles and will focus on driving growth of the combined entity. In the buyout program, Reliance is acquiring partial stake from the existing shareholders of Saavn for around $104 million while these shareholders retail their balance stake. The shareholders invested in Saavn include Tiger Global Management, Liberty Media and Bertelsmann among others.
“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,” said Akash Ambani, Director, Reliance Jio.
“Saavn has been at the forefront of the digital music revolution in India. Our partnership with Reliance reinforces our commitment to the growth of our label partners, the independent artist ecosystem, and the overall music industry globally,” added Paramdeep Singh, Co-Founder and Executive Vice Chairman at Saavn.
Reliance says JioMusic has been the fastest growing music streaming service for over 60 consecutive weeks while Saavn has been the only streaming service to hit top charts in multiple markets including India, US, UK, Canada, UAE and Singapore, among others.
Reliance Jio says that it will continue to build on Saavn’s award-winning original programming and originals created with leading artists. The deal will combine the streaming media expertise of Saavn with the connectivity and digital ecosystem of Reliance Jio.