Saudi Arabian media conglomerate MBC Group, through its MBC Ventures arm, has purchased 4,074,533 ordinary shares in music streaming app, Anghami, giving it a 13.7% ownership stake in the Nasdaq-listed company.
This strategic partnership between a long-established media powerhouse and Anghami, a rapidly growing digital platform, signifies a significant development for the MENA entertainment industry.
According to MBC Group, this will acquisition will enable it expand its foothold in the media streaming market and strengthen its position as a leader in the region’s media landscape. The deal also allows MBC to tap into Anghami’s younger user demographic and potentially leverage the platform to promote its own content libraries.
Founded in 2012 by entrepreneurs Eddy Maroun and Elie Habib in Lebanon, amassed a subscriber base exceeding 1.73 million users across the MENA region as of the third quarter of 2023. The platform offers a vast library of Arabic and international music, catering to diverse tastes.
Following the acquisition, Anghami’s share price surged 59 percent on March 20, closing at $1.59, up from $1 on March 19, increasing the value of MBC’s 13.7 percent stake to $6.48 million from $4.074 million.
Although the financial terms of that investment were not disclosed, but based on Anghami’s closing price of $1.00 on March 19, the last trading day before the transaction was disclosed, the purchase was worth roughly $4.074 million.
Its IPO was oversubscribed by $14.53 billion. The company raised $221.6 million from the IPO, with an implied market capitalization of $2.21 billion.
However, Anghami faces stiff competition from global giants like Spotify, which has also set its sights on the lucrative MENA market. Over a year ago, Spotify was reported to be eyeing an acquisition of Anghami, although no deal has come to fruition since then.
IFPI identified MENA as the world’s fastest-growing music market in 2021, and the third-fastest in 2022.
The partnership with MBC Group provides Anghami with several advantages. MBC boasts a well-established distribution network across the Middle East, encompassing popular free-to-air channels and on-demand streaming services like Shahid VIP.
This could expand Anghami’s reach and user base. Additionally, MBC’s expertise in content creation could lead to collaborations on original music programming or exclusive content deals with artists, further enhancing Anghami’s offerings.
