Reliance Jio has signed an agreement to combine JioMusic with the digital music service Saavvn. This merger creates a digital media platform with an evaluation of USD 1 billion.
Besides this, Reliance also plans to invest $100mn – inclusive of $20million for growth and expansion of the platform into one of the largest streaming services in the world. Amongst the ambitious plans for this new entity are cross-border original content, an independent artist marketplace, consolidated data and one of the largest mobile advertising mediums.
As part of the deal, Reliance will be acquiring a partial stake from the existing shareholders of Saavn for $104 million. Some of the major shareholders of Saavn include Tiger Global Management, Liberty Media and Bertelsmann.
Saavn’s three co-founders – Rishi Malhotra, Paramdeep Singh and Vinodh Bhat – will continue in their leadership roles and will drive growth of the combined entity.
This move will accelerate growth that would benefit all aspects of the ecosystem, including users, music labels, artists and advertisers, reads the official statement. The combined platform will also build on Saavn’s Artist Originals (AO) which has delivered some of the top records in India and South Asia including Zack Knight and Jasmin Walia’s Bom Diggy.
Prior to this, Amazon was on a deal signing spree. It has tied up with Sony Music, Zee Music, Saregama and Tips. Well, the streaming music war is just starting!