Amazon.com, Inc is back in talks to buy MX Player, a video streaming platform owned by Times Internet, after calling off the deal almost a year ago. This information comes from two people familiar with the matter.
The previous deal fell through because Amazon and Times Internet couldn’t agree on the price. Amazon’s team, after reviewing MX Player, valued it at around ₹500 crore ($60 million), while Times Internet wanted over $100 million. The current valuation has dropped even further because MX Player is struggling financially.
“The two parties are close to a deal now. MX Player’s value has decreased due to its poor financial condition. However, MX Player, which has over ₹2,500 crore in debt, will need to handle this debt itself. Amazon won’t take it on,” one of the sources said.
Neither Amazon nor MX Player’s CEO, Karan Bedi, responded to questions about the deal.
Amazon already has two video services in India: Prime Video, a subscription-based service, and Amazon miniTV, a free ad-supported service launched in May 2021. Prime Video, included with an Amazon Prime subscription, targets higher-income users and offers additional benefits like free shipping and ad-free music. MiniTV, available within the Amazon shopping app, targets a broader audience with smartphones and internet access.
Adding MX Player would enhance Amazon’s ad-supported video business. MX Player, initially created by a South Korean developer as a media player, was bought by Times Internet in 2018 for ₹1,000 crore ($140 million at the time). It was then turned into an ad-supported streaming app and quickly became popular, reaching over 100 million users and 50 million daily viewers at its peak. Now, MX Player claims over 300 million users worldwide.
Despite this growth, MX Player has struggled to generate enough cash to fund its expansion. Times Internet has been selling some of its businesses, including MX Takatak to ShareChat in February last year, Dineout to Swiggy in May 2022, and lifestyle publications MensXP and iDiva, along with an influencer marketing firm Hypp, to Mensa Brands in December.
Amazon’s acquisition of MX Player would strengthen its position in the ad-supported streaming market in India.
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