MENA-based TV and movie subscription service OSN+ is merging with music streaming company Anghami.
The move will see the two platforms join to create a streaming powerhouse that is poised to take on global heavyweights Spotify and Netflix in the Middle East and North Africa region.
Under the terms of the agreement, OSN, a subsidiary of Kuwait-listed KIPCO, will “inject up to USD $50 million” in Abu Dhabi-based Anghami for a majority stake in the music streaming service, OSN’s parent company said in an investor filing on Tuesday (November 21).
OSN Group will invest in Anghami at a valuation of $3.65 per share, representing a 3.9 X premium to the company’s average stock price for the past month.
KIPCO said the agreement is still subject to regulatory and antitrust approvals, and is expected to be finalized in the first quarter of 2024.
The deal will create a streaming powerhouse in the MENA region with 120 million users, 2.5+ million subscribers and $100 million in revenue at closing, Anghami said.
Anghami, with its music catalog of over 100 million songs, will complement OSN+’s 18,000 hours of video content and exclusive partnerships with global studios such as HBO, NBC Universal, and Paramount, as well as leading Arabic and Turkish studios.
“We’re bringing together technology, music and video to build a comprehensive media ecosystem. It’s a chance to deepen our connection with our users and to create something they will truly love.”
Elie Habib, ANghami
According to Anghami, the merger “will leverage Anghami’s strong tech stack and rich music catalog coupled with OSN+’s library of premium video content to deliver a unique digital streaming experience with AI-driven hyper-personalization”.
The combined business will be led by Anghami co-founder Elie Habib as CEO, while OSN will continue to run its linear TV business OSNtv, with Joe Kawkabani as Group CEO.
“Joining forces with OSN+ is a leap in Anghami’s journey to reinvent entertainment in the Arab World. We’re bringing together technology, music and video to build a comprehensive media ecosystem,” Habib said.
“It’s a chance to deepen our connection with our users and to create something they will truly love.”
Joe Kawkabani, CEO, OSN Group, added: “This is a major milestone in OSN’s journey as we continue to scale up our streaming business. Combining OSN+ content with Anghami’s technology enables us to deliver the best of entertainment all in one place for our customers, ensuring we are continuously evolving our offering to meet their needs.
“As two home-grown entities with an unmatched understanding of the local market, we are confident that this new offering will change the face of the regional streaming landscape.”
“As two home-grown entities with an unmatched understanding of the local market, we are confident that this new offering will change the face of the regional streaming landscape.”
Joe Kawkabani, OSN Group
Anghami noted that the final amount of the cash investment and the final number of its securities to be issued in a private share placement to the OSN Group is subject to adjustment based on the terms of their agreement.
Following the merger, OSN will own a majority stake in Anghami, and the latter company says that it intends to maintain its listing on the Nasdaq Stock Market.
Anghami was founded in 2012 by entrepreneurs Eddy Maroun and Elie Habib in Lebanon. The company, which claims to be the first music-streaming platform in the MENA region, has 120 million registered users and 1.52 million paying subscribers.
The company counts SRMG Ventures, the venture capital arm of Saudi Research and Media Group (SRMG), among its backers.
Anghami has continuously expanded its business over recent years. It has invested in artificial intelligence with the launch of its AI-Powered Personalized Podcast and AI Newsroom in May, acquired events and concerts company Spotlight in June 2022, and formed partnerships with the likes of Sony Music Middle East, mobile game PUBG, and Warner Music Group-backed Rotana Music.
Less than a month ago, Anghami received a notice from the Nasdaq that it was not in compliance with a listing rule that requires listed companies to have a minimum market value of $50 million. The company had until October 31 to request a hearing. Anghami remains actively trading on the NASDAQ to date.
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