Anghami and OSN+ merge to enhance entertainment offerings

Music streaming service Anghami and regional TV and movie subscription provider OSN+ officially announced the completion of their merger, forming what they refer to as a significant entertainment hub in the Middle East and North Africa region.

The deal, first unveiled in late November 2023, has now been finalised following the receipt of all necessary regulatory approvals. This strategic merger values Anghami at $3.69 per share, which is a substantial 1.9x premium over its closing price, reflecting the high stakes and expectations vested in this partnership. OSN Group has acquired a controlling interest of 55.45% in Anghami, significantly boosting its influence over the company's operations.

Elie Habib, co-founder and CTO of Anghami, is set to lead the merged entity as the incoming CEO, while Joe Kawkabani will continue as the CEO of OSN Group. Habib, who co-founded Anghami in 2012 alongside Eddy Maroun, will now helm the first music-streaming platform in the MENA region as it embarks on this new chapter.

This merger not only combines Anghami's extensive library of over 100 million songs and podcasts with OSN+'s impressive catalog of 18,000 hours of video content but also merges their considerable user bases. The combined entity now boasts over 120 million registered users, with around 2.5 million of these subscribing to paid services. Their combined revenues are reported to stand at a solid $100 million.

Habib expressed enthusiasm about the merger last November, stating, “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.” He emphasised the potential for technological advancements, noting that the new entity would benefit from Anghami's robust tech stack and AI-driven hyper-personalisation capabilities.

Joe Kawkabani of OSN Group also highlighted the synergies of the merger, saying, “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.”

Prior to the merger, in February, Saudi Arabian media giant MBC Group had discreetly acquired a 13.7% stake in Anghami, purchasing 4,074,533 ordinary shares through its MBC Ventures arm.

As the Middle Eastern entertainment market continues to expand, the merger between Anghami and OSN+ represents a pivotal development, promising to reshape the future of streaming and content consumption in the region.

[Via MBW]