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OSN+ to invest $50M in Anghami, shares surge 43%

EditorHari Govind
Published 21/11/2023, 16:00
Updated 21/11/2023, 16:00
© Reuters.

OSN+, a Dubai-based entertainment titan and a subsidiary of KIPCO, is making a strategic move to acquire a substantial stake in the music streaming service Anghami. This investment, which could reach up to $50 million, is set to merge their cutting-edge technologies into an AI-powered streaming platform designed to tailor content for its users. Following the announcement, Anghami's stock price experienced a significant surge, jumping approximately 43%, with KIPCO pricing Anghami's shares at $3.65.

Anghami has demonstrated robust financial health, showcasing a revenue increase to $48 million in 2022 and boosting its paid subscriber count by 21%, reaching 1.52 million within a community of 120 million registered users. The synergy between the two companies is anticipated to kickstart operations with more than $100 million in revenue from over 2.5 million paying subscribers once the deal concludes in early 2024.

Elie Habib is poised to helm the joint venture as CEO, while Joe Kawkabani will continue to spearhead OSN's linear TV business. This collaboration follows on the heels of a $5 million investment from SRMG and successfully sidestepping a potential Nasdaq delisting for Anghami due to previously low stock prices. The partnership signifies a considerable expansion within the media landscape of the Middle East and North Africa (MENA) region.

OSN+ is renowned for its curated selection of movies and TV series across various countries and maintains partnerships with regional telecommunications companies. It also holds licensing agreements with major global music labels such as Universal Music Group (AS:UMG) and Sony (NYSE:SONY) Music Entertainment. This merger is expected to revolutionize MENA's streaming services by amalgamating their deep understanding of local content preferences into a singular, comprehensive media ecosystem.

InvestingPro Insights

As OSN+ embarks on its strategic acquisition of Anghami, investors are closely monitoring the financial metrics and market potential of this collaboration. According to recent data from InvestingPro, Anghami's revenue has shown a promising increase to $48 million in the last twelve months as of Q1 2023. This is a testament to the company's growing appeal and operational efficiency. Moreover, with a 21% rise in paid subscribers, the company is demonstrating its capacity to convert registered users into a sustainable revenue stream.

InvestingPro Tips suggest that the integration of AI technology into streaming services could potentially enhance user engagement and retention, which is critical for the long-term success of both Anghami and OSN+. Subscribers to InvestingPro have access to additional insights, including 15 more tips related to media and streaming companies, which could be invaluable for investors considering this market. With the InvestingPro subscription now available at a special Black Friday sale with discounts of up to 55%, it's an opportune time for those interested in deepening their market analysis to take advantage of this offer.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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