Amazon agreed to purchase some assets of video-streaming platform MX Player from Times Internet on Wednesday, according to a report. The first mention of this deal reportedly surfaced in 2023 when the e-commerce giant entered talks with the Tencent-backed firm but it almost fell through. In May, it was reported that conversations between the two parties resumed again, and a possible deal was on the cards. The deal has reportedly now been agreed for a sum of less than $100 million.
Amazon Buys Some Assets of MX Player
TechCrunch, quoting a source familiar with the matter, reported that Amazon and Times Internet had agreed on a deal that would see the retail giant purchase some assets but not the video-streaming platform in its entirety. Following this deal, Amazon gets a “distribution and marketing partner” which could potentially help the company become “more popular and trustworthy” to people in smaller cities.
MX Player was originally developed by South Korean developer J2 Interactive (now MX Media and Entertainment) as a video player for the mobile platform. However, it was later turned into a full-fledged but ad-supported video-streaming platform with options such as offline streaming, background playback and more.
In 2018, Times Internet purchased a majority stake in the platform for a reported $140 million.
As per an Inc42 report, this is an all-cash transaction for a reported $100 million which is even less than the $110.8 million it had raised in a financing round led by Chinese conglomerate Tencent in 2019. At the time, MX Player was reportedly valued at $500 million.
“We are always looking for ways to introduce new products and services that help improve customers’ lives,” the publication reported an Amazon spokesperson as saying. “We’re excited to continue to entertain India with the great local originals and exclusive content available across our Prime Video and miniTV services in India.”
Inc42 further reported that after the completion of this deal, MX Player’s senior management will join Amazon. A formal announcement of the deal is speculated to arrive within a week.
