Amazon to acquire "some assets" in video streaming platform MX Player

Amazon has signed an agreement to purchase some assets of Indian video streaming service MX Player from Times Internet. The transaction is not yet complete.

Speaking to afaqs!, an Amazon spokesperson said, “We are always looking for ways to introduce new products and services that help improve customers’ lives. We’re excited to continue to entertain India with the great local originals and exclusive content available across our Prime Video and miniTV services in India.”

As per a report by Tech Crunch, the two companies finalised an agreement for the transaction on June 5. The deal assesses MX Player at below $100 million, significantly lower than its previous capital raise valuation of $500 million, according to a source familiar with the matter informed TechCrunch.

The report further mentions that following the closure of the transaction, numerous key executives from MX Player are expected to transition to Amazon. Over the past two years, Times Internet and its affiliate, Times Group, have actively sought to divest several of their digital assets. Times Internet initially acquired MX Player in 2018 for $140 million.

With MX Player, Amazon gains a distribution and marketing ally that could enhance the visibility and credibility of its e-commerce platform among audiences in smaller Indian cities and towns. MX Player enjoys particular popularity among these demographic segments, contrasting with Amazon's predominantly urban consumer base. The source also mentioned that Amazon intends to maintain the MX Player branding.

Currently, Reliance has established dominance in the Indian video streaming service market through its collaboration with Disney. The two entities agreed to merge their respective India media assets in late February. Collectively, their applications accounted for 55% of all monthly active users across video streaming services in India.