Reliance Jio, Saavn to create $1 bn digital music platform

In a deal led by RJio director Akash Ambani, Reliance Industries on Friday signed an agreement for combination of digital music service Saavn with JioMusic to create a digital media platform with global reach having total value of over $1 billion.

“We are delighted to announce this partnership with Saavn, and believe that their highly experienced management team will be instrumental in expanding JioSaavn to an extensive user base, thereby strengthening our leadership position in the Indian streaming market," Reliance Jio (RJio) Director Akash Ambani said.

RIL executed definitive agreements for the combination of Saavn with its digital music service, JioMusic.

"The combined entity is valued at over $1 billion, with JioMusic's implied valuation at $670 million," the statement said.

Reliance will also invest up to $100 million, out of which 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.

"The integrated business will be developed into a media platform of the future with global reach, cross-border original content, an independent artist marketplace, consolidated data and one of the largest mobile advertising mediums," the statement said.

As part of the deal, additionally, Reliance will be acquiring a partial stake from the existing shareholders of Saavn for $104 million. The shareholder base of Saavn includes Tiger Global Management, Liberty Media and Bertelsmann among others.

The three co-founders of Saavn, Rishi Malhotra, Paramdeep Singh and Vinodh Bhat, will continue in their leadership roles and will drive growth of the combined entity.

RIL has picked up partial stake from current shareholders for $104 million and will be investing another $100 million for the growth of the combined Jiomusic-Saavn