Reliance buying stake in Indian music streaming service Saavn

Vastavam web: Oil-to-telecoms conglomerate Reliance Industries is buying a stake in Indian music streaming service Saavn and will merge it with its JioMusic app to create a new entity it said would be valued at $1 billion.As part of the deal, Reliance will buy a stake in Saavn from its shareholders for $104 million. It also plans to invest up to $100 million, $20 million of it upfront, to expand the JioMusic-Saavn combine, both sides said in a joint statement on Friday.

Reliance, controlled by India’s richest man Mukesh Ambani, did not disclose the size of its stake in the JioMusic-Saavn combine, but it said the $1 billion valuation for the merged entity included a $670 million valuation for JioMusic.Reliance’s Jio telecoms business has been India’s fastest-growing phone carrier since its launch in September 2016. It disrupted the market with discounts and free voice offerings, while expanding its library of Indian films, music and TV shows.