Dubai-based entertainment streaming platform OSN+ has purchased a majority stake in Nasdaq-listed music streaming service Anghami, forming a powerful media partnership in the growing MENA media landscape. OSN, a subsidiary of Kuwait holding company Kuwait Projects Company, known as KIPCO, said in a regulatory filing on Tuesday that it will “inject up to USD $50 million” into the Abu Dhabi-based Anghami.
According to a joint announcement, the merging of the two homegrown platforms will “leverage Anghami’s strong tech stack” and catalog of 100 million songs with OSN+’s Netflix-like library of premium video content to forge a “unique digital streaming experience with AI-driven hyper personalization that prioritizes recommendations based on user preference.”
KIPCO’s OSN Group puts Anghami’s valuation at $3.65 per share and said the music streaming will maintain its listing on Nasdaq, where in morning trading has skyrocketed up around 43% to $2.26. The transaction is expected to close in the first quarter of 2024, subject to customary closing conditions and regulatory approvals. Once all the i’s are dotted, OSN Group will own a majority stake in Anghami, which was founded in 2012.
In March, Anghami said its revenue grew by more than 35% to $48 million in 2022, driven by a 21% year-over-year uptick in paid subscribers to 1.52 million. Anghami claims to have 120 million registered users overall, up significantly from the 75 million it boasted in 2021.
Combined at closing, the companies say they’ll start with this venture with “more than 2.5 million paying subscribers with over $100 million in revenue.”
Anghami co-founder Elie Habib will be CEO of the fused streaming companies, though OSN’s linear TV business will be run independently by that group’s CEO, Joe Kawkabani.
“Joining forces with OSN+ is a leap in Anghami’s journey to reinvent entertainment in the Arab World,” said Habib. “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.”
The pair-up comes just a few months after Anghami received a $5 million investment from the venture capital arm of the Saudi Arabia media company SRMG. And in October, Anghami fought off a warning from Nasdaq after its stock price dipping below $1.00 for an extended period. At the time of the warning from Nasdaq, Anghami shares were at $0.82 apiece.
OSN+ offers movies and TV series, including both original and third-party content, and is available in 22 countries, including Algeria, Egypt, and the United Arab Emirates. As of April filing with the SEC, Anghami said it had 47 telco partnerships across the Middle East and Northern Africa and licensing deals with major Arabic and international music labels including Rotana Music, Universal Music Group, Sony Music Entertainment, Warner Music Group and Merlin, among others.
“This is a major milestone in OSN’s journey as we continue to scale up our streaming business,” said Joe Kawkabani, CEO of OSN Group. “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.”
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