Music streaming platform Anghami and MENA-based TV and movie subscription service OSN+ announced the completion of their merger on Tuesday (April 2), creating what they describe as an “entertainment powerhouse” in the region.
The transaction was finalized after securing all required regulatory approvals. The two companies first announced their merger plans in late November 2023. Anghami disclosed at the time that OSN will “inject up to USD $50 million” in Anghami for a majority stake.
Most recently, Anghami said OSN Group acquired a 55.45% stake in the company, giving it a controlling interest. The deal values Anghami at $3.69 per share, representing a significant 1.9x premium over Anghami’s closing price on March 28.
Anghami Co-founder and CTO Elie Habib will lead the combined entity as incoming Anghami CEO, while Joe Kawkabani will remain as OSN Group CEO. Habib co-founded Anghami in 2012 with Eddy Maroun. The company describes itself as the first music-streaming platform in the MENA region.
The union brings together Anghami’s vast catalog of over 100 million songs and podcasts with OSN+’s library boasting 18,000 hours of video content.
“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.”
Elie Habib, Anghami
The newly formed powerhouse boasts a user base exceeding 120 million registered users, with approximately 2.5 million currently subscribed to paid services. Their combined revenues stand at $100 million.
“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 in November.
Beyond content integration, the merger also promises significant technological advancements.
The combined entity “will benefit from Anghami’s strong tech stack, delivering an enhanced streaming experience with AI-driven hyper-personalization and soon to be announced best-in-class products,” Anghami said in a statement.
“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
“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,” OSN Group’s Kawkabani said in November.
Before the closing of the deal with OSN+, Saudi Arabian media giant MBC Group quietly acquired a 13.7% stake in Anghami, it was revealed in February. MBC Group, through its MBC Ventures arm, purchased 4,074,533 ordinary shares in Anghami. The music streaming service also counts SRMG Ventures, the venture capital arm of Saudi Research and Media Group (SRMG), among its backers.
Anghami has steadily grown its operations in recent years. It ventured into artificial intelligence by introducing its AI-Powered Personalized Podcast and AI Newsroom last May. Additionally, it acquired events and concerts company Spotlight in June 2022, and established partnerships with notable entities such as Sony Music Middle East, mobile game PUBG, and Rotana Music, backed by Warner Music Group.
Less than a month ago, Anghami expanded its partnership with Rotana to cover live concerts and artist collaborations.
The merger with OSN+ comes as the Middle Eastern entertainment market is seeing continued growth.
According to IFPI’s latest Global Music Report, the MENA region’s recorded music market grew 14.4% YoY in 2023, softer than the 26.8% jump in 2022, but exceeding the global growth rate. Streaming revenues held a 98.4% share of the music market in MENA in 2023.
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