OSN+ and Anghami complete merger to create Middle East streaming powerhouse

💻 UAE-based online streaming platform OSN+ and Lebanon-founded music streaming app Anghami Inc. have officially completed their merger, after completing the deal’s $50 million transaction and receiving all regulatory approvals, to become the Middle East’s new streaming powerhouse.

• OSN Group has acquired 55.45% in Anghami, giving it a majority stake at a valuation of $3.69 per share.

⏪ Background

Anghami was founded in 2012 in Beirut, before moving to Abu Dhabi in 2021. It was the first music-streaming platform in MENA to digitise the region’s music and has since established over 40 telco partnerships. It features music from Universal Music Group, Sony Music Entertainment, Warner Music Group and the Merlin Network.

OSN was formed in 2009, and operates across 22 countries in the MENA region, delivering content across its multiple networks OSN+, linear TV service OSNtv, and b2b offerings in each market. OSN+ also houses content from its exclusive partnerships with global studios such as HBO, NBC Universal, Paramount, as well as leading Arabic and Turkish studios.

⚙️ Break it down

Over two years ago, Anghami became the first tech company from the Arab world to sell shares on the NASDAQ, which it did through a SPAC at an enterprise value of $220 million.

Its share price has since fallen to $1.58, giving it a market value of about $41 million. OSN’s cash injection will help the stock from being delisted.

• The OSN Group is investing in Anghami at a valuation of $3.65 per share, or 3.9 times the stock’s average price for the month prior to the deal’s announcement in November 2023.

🔮 Flashforward

The combined entity will merge OSN+'s premium and exclusive library of 18,000 hours of video content with Anghami's vast catalog of more than 100 million songs and podcasts, all under one common app.

• The new platform some 120 million active users – 2.5 million who are paying subscribers – and $100 million in revenue.

The new app will benefit from Anghami’s strong tech stack, to deliver an enhanced streaming experience with AI-driven hyper-personalisation.

• Elie Habib, Anghami co-founder and CTO, will lead the combined entity as incoming Anghami CEO, while Joe Kawkabani will remain as OSN Group CEO.