Amazon in talks to acquire MX Player from Times Internet: Reports
- ByStartupStory | March 20, 2023
Reports suggest that Amazon Inc, the American e-commerce giant, is in advanced negotiations to acquire MX Player, a video streaming service owned by Times Internet.
Amazon has engaged a leading accounting firm to conduct exclusive due diligence on the company, and the process is expected to take up to 40 days.
While the deal is not yet finalised, it could be completed within two months if everything goes as planned.
Zee Entertainment and Sony are also reportedly interested in acquiring MX Player, which was acquired by Times Internet for $140 million in 2018 and has a user base of over 300 million worldwide.
The reports did not provide a clear indication of the potential buyer’s proposed acquisition price for MX Player. However, sources cited in the reports disclosed that Times Internet’s asking price for MX Player was over $100 million, whereas Amazon’s internal team had estimated its value to be approximately Rs 500 crore ($60 million). The acquisition deal is expected to fall within the range of Rs 600-900 crore.
MX Player, a video streaming service popular in India, offers free access to a vast collection of videos, including live cable TV channels, and relies heavily on advertising for revenue.
The company was quick to adopt the short-form video format, taking advantage of the Indian government’s decision to ban TikTok in 2020. Later, MX Player merged with ShareChat’s Moj, a short-video service, in a $900 million deal.
Amazon currently owns two video streaming services in India: the ad-supported MiniTV and the subscription-based Prime Video. While Prime Video targets high-end consumers and requires a subscription, MiniTV is free and aimed at the general public with smartphones and data connections.
Amazon introduced MiniTV in May 2021, and its recent acquisition of MX Player will significantly boost its ad-supported video-on-demand business.
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