The American multinational technology company Amazon is reportedly in talks with the Indian internet technology giant Times Internet for the acquisition of the OTT major MX Player.
According to sources privy to the matter, Amazon is interested in buying one of India’s largest on-demand video streaming services provider MX Player and is already known to be exploring the acquisition deal from Times Internet.
In 2018, the Indian digital arm of India’s largest media conglomerate Times Group, Times Internet acquired MX Player in a deal worth $140 million or Rs 1,000 crore, getting hold of a majority stake in the video playback application.
Sources have cited that through the acquisition of MX Player, Amazon is looking to tap deeper into a major overseas market like India, where the entertainment industry is expanding.
Three sources have cited that even though the deliberations of the deal are going on, it may not necessarily materialize into a final offer, a TechCrunch report states.
Further, it is not just the US-based e-commerce giant that is reportedly vouching for acquisition of MX Player but also other strong competitor players, including Zee-Sony, two sources said.
The video streaming and video on demand platform MX Player has expanded widely over the years, especially since the OTT players have took a massive hit on the entertainment industry worldwide and in India, encompassing multiple original content pieces and bringing in shows for over 300 million users/viewers globally.
The reason for MX Player’s hype is a wide video catalog that allows its users access to live cable TV channels at no charge whatsoever. Instead, the service makes most of its revenue through advertisements, stated a GizmoChina source.
At present, the valuation of MX Player stands at around $500 million, claiming to have over 150 million active users in India alone, presenting it as a valuable acquisition pointer for a behemoth like Amazon to expand further in India.
