Last week, Reliance Jio integrated its music streaming business, JioMusic with US-based over-the-top (OTT) music service Saavn, with the combined entity valued at over $1 billion. The deal will see Delaware-registered Saavn LLC become a wholly-owned subsidiary of Saavn India, and therefore, an indirect subsidiary of Reliance Industries Limited (RIL). The transaction means that RIL would acquire an 81.7% stake in Saavn India in exchange for the transfer of its music business to Saavn India. RIL will pay Rs 805 crore ($124.1 million) for the stake.
The deal would see Reliance acquire a partial stake from existing investors, including Tiger Global Management, Liberty Media, and Bertelsmann for $104 million.