As per RIL, JioMusic’s valuation for the transaction was 670 million USD. The Company will invest additional $1 billion for making the JioMusic and Saavn combined platform as one of the largest music services in the world.
$20 million will be invested upfront and Saavn’s co-founders Rishi Malhotra, Paramdeep Singh, and Vinodh Bhat – will continue in their respective leadership roles at the combined entity.
The investments will be made in the form of rupee-equivalents of the amounts mentioned above.
Reliance will also get a stake held by Saavn’s existing shareholders for a total of USD 104 million. Saavn’s shareholders, including Tiger Global Management, Liberty Media, and Bertelsmann, will continue holding their stake.
Reliance Jio Director Akash Ambani said, “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,”
Meanwhile, JioMusic has been country’s fastest growing music app for more than 60 weeks continuously. It plays all popular Indian and International songs with a collection of more than 16 million HD songs across 20 languages.
JioMusic and Saavn together will have Saavn’s streaming media expertise and Jio’s digital ecosystem.
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