In a groundbreaking deal that will have a transformative impact on the media and entertainment industry in the Middle East and North Africa (MENA) region, OSN+, the leading streaming platform for premium content, and Anghami Inc. (NASDAQ: ANGH), the top music and entertainment streaming platform in the region, have unveiled a merger agreement. This merger, a first-of-its-kind in the area, will bring together these two local brands, providing consumers with an unparalleled digital aggregation of premium movies, TV shows, music, podcasts, and more. The collaboration aims to deliver a seamless and immersive user experience, elevating the offerings available to users.
Read more: Anghami’s revenues surge to $35.5 million in 2021
With a substantial cash investment of up to $50 million from OSN Group, the merger between OSN+ and Anghami Inc. will unite a combined user base of over 120 million registered users and more than 2.5 million paying subscribers. This merger will result in Anghami Inc. becoming one of the largest streaming platforms in the MENA region, with over $100 million in revenue upon completion. Anghami boasts an extensive catalog of over 100 million songs, including exclusives from renowned artists like Amr Diab, the best-selling Middle Eastern artist of all time. On the other hand, OSN+ brings to the table over 18,000 hours of video content and exclusive partnerships with esteemed international studios such as HBO, NBC Universal, Paramount, as well as leading Arabic and Turkish studios.
Customer-centricity at the core
Placing customer satisfaction at the forefront, the upcoming platform is dedicated to providing the finest product and content experience in the region. Harnessing the strengths of both brands, the platform will utilize Anghami’s robust technological infrastructure and extensive music catalog in conjunction with OSN+’s vast library of premium video content. This combination will result in a distinctive digital streaming experience that incorporates AI-driven hyper-personalization, placing a priority on tailored recommendations based on user preferences.
Reinventing entertainment
Elie Habib, co-founder of Anghami and set to be the CEO of the combined business commented: “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. 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.”
Strategic investment
The OSN Group will invest in Anghami at a valuation of $3.65 per share, which is 3.9 times the average price of the stock over the past month. Following the completion of the transaction, Anghami intends to maintain the listing of its ordinary shares on the Nasdaq Stock Market. The transaction is expected to be finalized in the first quarter of 2024, pending customary closing conditions and regulatory approvals. Upon the completion of the transaction, the OSN Group will hold a majority stake in Anghami Inc. The precise amount of the OSN Group’s cash investment in Anghami and the number of Anghami securities to be issued in a private placement to the OSN Group will be adjusted according to the terms of the definitive transaction agreement. Additionally, alongside its stake in Anghami, OSN will continue to operate its linear TV business, OSNtv, under the leadership of Group CEO Joe Kawkabani.
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