Though this drama isn’t as long as the Zee and Sony merger, the year-long saga between Amazon and MX Player regarding the acquisition is about to end soon, or at least that’s what some sources are saying.
Last March, Amazon attempted to acquire the video streaming platform, but talks fell through in July. However, it now seems they are closer than ever.
“Amazon India has been in late-stage talks to acquire MX Player in a distress sale. The contours of the deal have been chalked out, and Amazon has offered a term sheet to MX Player.”
According to sources, though the talks fell through in July last year, they resumed again in February this year. On paper, it looks like a very profitable deal.
Firstly, MX Player is not like any traditional streaming app, although its library isn’t extensive. Its main USP is the ability to play offline videos. After VLC Player, MX Player stands out as one of the major platforms providing this service.
Moreover, it can easily tie up with Amazon Mini TV. Amazon could even merge both services and come up with something that benefits both parties.
Another source confirms that MX Player’s team will join Amazon Mini TV, with executive officer Karan Bedi likely to join as director, which would be a good asset for both platforms.
The rumored deal is around $50M, and Amazon is doing it at a reasonable price, considering a significant number of Indians use MX Player. In terms of content, Amazon might see a major improvement, that’s for sure.