Dubai-based streaming service OSN+ and music streaming platform Anghami, based in the UAE, announced they would be merging into one of the largest entertainment streaming services companies in the Middle East, as part of their efforts to confront competition such as Spotify and Netflix.
As part of the deal, OSN Group, the parent company of OSN+, will inject US$50 million into Anghami, becoming its majority shareholder.
The two companies said in a joint statement that the new entity will include more than 120 million registered users, 2.5 million paid subscriptions, and revenues of $100 million.
“We are two local brands, and this is very important because we are creating an experience that the region has never seen before,” said one of the two co-founders of Angham, Elie Habib, according to Sharq Business.
The CEO of OSN Joe Kawkabani posted on social media: “This union of two regional home-grown entities creates scale, while offering our customers better personalization and aggregation, bringing all their entertainment together in one place.”
The deal, which still needs regulatory and antitrust approvals, is expected to close early next year.
The OSN Group, whose shares are majority owned by a Kuwaiti group, will continue to manage its pay TV channels separately.
“The deal combines the strength of this content and the strength of technology, with the large scale that the two companies create together. We have a unique position, and I believe we have all the ingredients to succeed and compete very well against international competitors,” Kawkabani added.
Earlier, the OSN Group announced that its investment in Anghami values the stock at $3.65, or 3.9 times its average price over the past month.
