Amazon Strengthens India Presence With MX Player Asset Acquisition: Report

Zinger Key Points
  • Amazon reportedly acquires certain assets of MX Player for under $100 million.
  • Deal aimed at boosting Amazon's presence in smaller cities and towns in India. Inc AMZN has reportedly agreed to purchase certain assets of Indian video streaming service MX Player from local media giant Times Internet in an attempt to enhance its presence in smaller cities and towns in India.

Amazon reached a definitive agreement with Times Internet on Wednesday evening, according to a report from TechCrunch.

The deal, valued at under $100 million, is significantly lower than the $500 million valuation MX Player achieved in its last capital raise.

Amazon is acquiring some assets of MX Player, which also counts Tencent Holdings Ltd. TCEHY among its investors. This acquisition concludes nearly two years of discussions aimed at finding synergies between the firms, per the report.

Over the past two years, Times Internet and its affiliate, Times Group, have been offloading several digital properties.

In MX Player, Amazon sees a valuable partner for distribution and marketing, especially in smaller Indian cities, the report mentioned, citing a source familiar with Amazon’s strategy. While Amazon has been popular in urban centers, MX Player is well-loved among more rural demographics.

Also Read: Amazon Inks’ Largest Technology Investment’ In Spain, Pours $17B Into Cloud Infrastructure

To expand its video streaming offerings, Amazon has introduced various services in India. These include a low-cost Prime subscription and a free ad-supported video service.

The report noted that an Amazon spokesperson confirmed the acquisition, emphasizing the company’s commitment to introducing new products and services to improve customer experiences.

Reliance and Walt Disney Company DIS dominate India’s video streaming market, commanding a combined 55% of monthly active users. MX Player holds a 15% market share, while Netflix Inc NFLX and Prime Video each account for 3-5%, the report highlighted.

Times Internet acquired MX Player in 2018 and transformed it into a comprehensive streaming platform with diverse content and features.

Amazon stock has gained more than 43% in the last 12 months. Investors can gain exposure to the stock via Consumer Discretionary Select Sector SPDR Fund XLY and Vanguard Consumer Discretionary ETF VCR

Price Action: AMZN shares closed higher by 1.08% at $181.28 on Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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