MUMBAI: Oil-to-telecoms conglomerate Reliance Industries is buying a stake in Indian music streaming service Saavn and will merge it with its JioMusic app to create a new entity it would be valued at US $ 1bil (RM3.89bil) .
As part of the deal, Reliance will buy a stake in Saavn from its shareholders for US $ 104mil (RM405.50mil). It is also planned to invest up to US $ 100mil (RM389.91mil), US $ 20mil (RM77.98mil) of it upfront, to expand the Javi Saumn combine, both sides said in a joint statement on Friday.
Saavn's existing investors – including Tiger Global Management, Liberty Media and Bertelsmann – will retain the holding in the new music services, according to the statement.
Reliance, controlled by India's richest man Mukesh Ambani, did not disclose the size of its stake in the JioMusic-Saavn combine, but it said the US $ 1bil (RM3.89bil) valuation for the merged entity included a US $ 670mil (RM2.61bil) valuation for JioMusic.
Reliance's Jio telecoms business has been India's fastest-growing (19659002) Analysts say Jio is betting on entertainment and sports content to boost users' spend on data. It has agreed several partnerships by buying stakes in the Indian film studio group Balaji Telefilms. – Reuters