OSN+ and Anghami’s Epic Merger Plans

In a significant development in the Middle East and North Africa (MENA) region’s entertainment landscape, MENA-based TV and movie subscription service OSN+ is set to merge with the renowned music streaming company Anghami. This strategic move aims to create a formidable streaming platform that can compete with global giants like Spotify and Netflix in the region.

In an article written on Xttrawave, Netflix and Spotify have emerged as the undisputed leaders in the streaming industry due to their pioneering approaches, vast content libraries, and a keen understanding of consumer preferences. Netflix revolutionized the way we consume television and movies by introducing the concept of binge-watching and producing high-quality original content. On the other hand, Spotify reshaped the music streaming landscape by offering an extensive library of songs, playlists, and podcasts while prioritizing user-friendly features and personalization.

Under the terms of this agreement, OSN, which is a subsidiary of Kuwait-listed KIPCO, will make a substantial investment of up to USD $50 million in Abu Dhabi-based Anghami, acquiring a majority stake in the music streaming service. This significant investment is set at a valuation of $3.65 per share, which represents a substantial premium of 3.9 times the company’s average stock price over the past month.

However, it’s important to note that this merger is still pending regulatory and antitrust approvals and is expected to be finalized in the first quarter of 2024.

Upon completion of this merger, the resulting entity will become a streaming powerhouse in the MENA region, boasting an impressive user base of 120 million users, over 2.5 million subscribers, and a combined revenue of $100 million. Anghami’s extensive music catalog of over 100 million songs will complement OSN+’s content library of 18,000 hours of video, including exclusive partnerships with global studios like HBO, NBC Universal, Paramount, and leading Arabic and Turkish studios.

This union of content and technology is seen as a significant step toward creating a comprehensive media ecosystem that combines music, video, and advanced AI-driven personalization. Anghami’s co-founder, Elie Habib, will assume the role of CEO for the combined entity, while OSN will continue to operate its linear TV business, OSNtv, under the leadership of Joe Kawkabani as Group CEO.

Both companies view this merger as a way to revolutionize entertainment in the Arab world by offering a seamless and diverse streaming experience. Leveraging Anghami’s tech stack and extensive music library with OSN+’s premium video content is expected to result in a unique digital streaming platform tailored to individual preferences.

With OSN’s and Anghami’s deep understanding of the local market, they are confident that this partnership will reshape the regional streaming landscape. Notably, Anghami intends to maintain its listing on the Nasdaq Stock Market, even after OSN becomes the majority stakeholder.

Anghami, founded in 2012, has rapidly expanded its offerings over the years, venturing into artificial intelligence, acquiring event and concert companies, and forming key partnerships with major players in the music and entertainment industry. This merger positions it for further growth and innovation in the MENA region’s dynamic entertainment sector.