Mukesh Ambani-helmed Reliance Industries Ltd on 23 March 2018 announced an integration with leading music app Saavn for its digital music service JioMusic. 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
In a statement, Reliance said it has executed definitive agreements for the combination of Saavn with JioMusic. Reliance is also acquiring a partial stake from existing shareholders of Saavn for $104 million. The shareholders include Tiger Global Management, Liberty Media and Bertelsmann. The company will continue to operate the over-the-top media platform available on all app stores.
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.
The combined entity is valued at over $1 billion, with JioMusic’s implied valuation at $670 million, the statement added. Reliance will also invest up to $100 million, out of which a rupee equivalent of $20 million will be invested upfront, for growth and expansion of the platform into one of the largest streaming services in the world.