Amazon has signed a definitive agreement to acquire certain assets of MX Player, a popular Indian video streaming service owned by Times Internet. This strategic move marks Amazon’s continued efforts to strengthen its presence in India’s competitive video streaming market.
The deal values MX Player at less than $100 million, significantly lower than its last funding round’s $500 million valuation. Amazon will not be acquiring the entire firm, which also counts Tencent among its investors. Many of MX Player’s top executives are expected to join Amazon after the transaction closes.
The acquisition follows nearly two years of negotiations between Amazon and Times Internet as they explored potential synergies between their properties. Times Internet and its affiliate Times Group have been actively looking to divest several digital properties in the past two years.
Amazon gains a valuable distribution and marketing partner in MX Player, which is particularly popular among audiences in smaller Indian cities and towns. The e-commerce giant plans to retain the MX Player branding and integrate some of its content into Amazon Prime.
Amazon has been expanding its video streaming offerings in India to reach beyond metro cities. The company offers a discounted Prime subscription variant that includes a version of Prime Video and maintains partnerships with local telecom operators to bundle Prime Video with their tariff plans. In 2021, Amazon launched an additional free, ad-supported video streaming service in India.
The acquisition is part of Amazon’s broader strategy to make its services and brand popular in smaller cities and towns in India. The company has traditionally been popular among urban consumers, but MX Player’s significant user base in less urban areas presents an opportunity for Amazon to broaden its reach.
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Times Internet acquired MX Player in 2018 for $140 million. The app, which originated in South Korea, gained immense popularity in India due to its unique local video playback feature. Following the acquisition, Times Internet transformed MX Player into a comprehensive video streaming platform, investing in a diverse range of licensed and original content to cater to the growing demand for online entertainment in India and internationally.
The deal concludes nearly two years of negotiations between Amazon and Times Internet and marks a significant step in Amazon’s ongoing efforts to expand its presence in India’s video streaming market.
