MBC Group, a dominant force in Saudi Arabian media, has discreetly acquired a sizable 13.7% stake in Anghami, a prominent music streaming service in the Middle East and North Africa (MENA) region.
Through its investment arm, MBC Ventures, MBC Group procured 4,074,533 ordinary shares of Anghami, as confirmed by a filing with the US Securities and Exchange Commission.
Although the exact financial details remain undisclosed, with Anghami's stock closing at $1.00 on March 19, the transaction's value is estimated to be around $4.074 million.
Upon the revelation of MBC's stake, Anghami's shares soared by an impressive 59% on March 20, settling at $1.59 by market close, translating MBC's investment to approximately $6.48 million.
This surge marked Anghami's highest stock price since December 13, 2023.
MBC Group, previously recognized as Middle East Broadcasting Center, is a government-owned media conglomerate in Saudi Arabia, renowned for its array of television channels, radio stations, studios, and entertainment brands. The company made its debut on the Saudi Exchange in January through an oversubscribed IPO, raising SAR 831 million ($221.6 million) with a market capitalization of SAR 8.3 billion ($2.21 billion).
This strategic alliance between MBC Group, a seasoned media powerhouse, and Anghami, a rapidly expanding digital platform, heralds a significant milestone for the MENA entertainment sector.
Founded in Lebanon in 2012 by entrepreneurs Eddy Maroun and Elie Habib, Anghami has garnered over 1.73 million subscribers across MENA as of the third quarter of 2023, offering a diverse library of Arabic and international music.
Despite its success, Anghami faces formidable competition from global titans like Spotify, which has shown interest in the MENA market, although talks of an acquisition have yet to materialize.
IFPI has identified MENA as the world's swiftest-growing music market in 2021 and the third-fastest in 2022.
The partnership with MBC Group furnishes Anghami with multiple benefits. Leveraging MBC's extensive distribution network across the Middle East, including popular channels and streaming services like Shahid VIP, could significantly widen Anghami's audience and user base.
Furthermore, MBC's proficiency in content creation may pave the way for collaborations on original music programming or exclusive content deals, enriching Anghami's offerings.
For MBC Group, investing in Anghami bolsters its foothold in the media streaming sphere and reinforces its standing as a dominant player in the regional media landscape. Additionally, it enables MBC to tap into Anghami's younger demographic, potentially utilizing the platform to promote its own content libraries.
