Spotify has already been working over its debut in India including countries like Russia, and Africa which has a very rich musical culture. Also the company has located office space and hired key employees for the lead roles. On the other hand, Saavn and Jio Music is being used by millions users in India daily. Both of the Apps have 50 million downloads on playstore. In this scenario, a joint entity could be profitable for Jio, and it would also take on Spotify’s services.
On Friday, Jio announced a deal with the New york based brand Saavn to merge its jio Music with Saavn. According to a statement, this jio – saavn joint entity would be valued at $1 billion (roughly Rs. 6,500 crores), with the “implied valuation” of Jio Music standing at $670 million (approximately Rs. 4,300 crores).
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Reliance jio will take a stake in Saavn for $104 million (about Rs. 675 crores). The existing German media giant Bertelsmann and US investor Liberty Media will keep their stake in Saavn. Rishi Malhotra, CEO of Saavn and his two fellow co-founders will keep their leadership posts.
Also as per sources, Jio also has plans to invest $100 million (about Rs. 650 crores) in the joint entity, with 20 percent being pumped upfront with the aim of making the combined entity “one of the largest streaming services in the world.”
“Nearly 10 years ago, we had a vision to build a connected music platform, dedicated to South Asian culture across the globe,” Rishi Malhotra, the co-founder and CEO of Saavn, said “Our alignment with Reliance enables us to create one of the largest, fastest-growing and most capable media platforms in the world.”
However after the merge, the joint platform would be re branded. Also a joint statement noted, it would preserve the original content by artists from the subcontinent feature that is one of the key attractions of Saavn. This deal literally signifies that Jio is looking forward in creating a fastest-growing and most capable media streaming platforms in the world.