Radio Mirchi parent company buys Gaana for Rs 25 lakh

Media networks report that the parent company of Radio Mirchi has acquired Gaana for Rs 25 lakh.

Gaana is now part of Radio Mirchi parent company

Gaana has been acquired by the parent company of Radio Mirchi for Rs 25 lakh, according to reports from media networks.

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Company Background

Gaana is owned by Times Internet, while Radio Mirchi is operated by Entertainment Network India Limited (ENIL), a subsidiary of the Times Group.

Integration and Pricing Update

• In a recent earnings call, ENIL’s CEO Yatish Mehrishi discussed Gaana’s integration into the company as of December 2023. Gaana has transitioned to a subscription-based model, with the subscription rate increased from Rs 299 to Rs 599 due to the earlier pricing being deemed unviable.

Financial Performance

• ENIL reported a 19.3% year-over-year increase in domestic revenues for Q1 FY25, reaching Rs 109.4 crore.

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Conclusion

In summary, Gaana’s acquisition by Radio Mirchi’s parent company, Entertainment Network India Limited (ENIL), for Rs 25 lakh represents a strategic move in the evolving media landscape. This integration, effective December 2023, reflects ENIL’s growth ambitions and Gaana’s shift to a subscription model with an adjusted rate of Rs 599. Despite Gaana’s previous high valuation and substantial investments, the deal highlights the challenges of corporate acquisitions in the digital space. With ENIL’s impressive revenue growth and ongoing financial commitments from Times Internet, Gaana’s future under ENIL’s stewardship will be pivotal in navigating the competitive music streaming market.