Saregama has agreed to acquire a 51.82% stake in the startup Pocket Aces as the oldest Indian music label makes deeper push into videos.
Saregama is paying about $20 million for the majority stake and plans to invest an additional $1.8 million in Pocket Aces, it said in a stock exchange filing. The music label plans to acquire as much as 92.61% of Pocket Aces over the future and will determine the pricing based on completion of certain metrics, it said.
TC reported about the two companies engaging for a deal earlier this month.
Pocket Aces largely produces short-form video content aimed at young Indians. It has seen its popularity surge in recent years as its shows, typically comedic and dealing with real-world issues, have resonated with viewers. The startup has also licensed IPs like the show “Little Things” to Netflix and shared other content with platforms such as Jio, MX Player, Vistara, and Qatar Airways. Pocket Aces reaches 50 million viewers weekly and accumulates 700 million views monthly, according to stats it has disclosed on its website.
More to follow.
