Mail.ru Group consolidating 100% of BOOM music app developer, to buy 80% for $97 mln
MOSCOW. Dec 28 (Interfax) - Mail.ru Group has signed an option to acquire the remaining 80% of UMA, the owner of rights to a music library, for $97 million, the Russian Internet company said in a press release.
The option was signed in line with Mail.ru's "ongoing focus on delivering the widest possible user experience in its social networks and the success over the last 2 years in building a sustainable, and fast growing music subscription base," the company said.
The option period expires on 21 May 2020, but Mail.ru plans to exercise the option in the first quarter of 2019, subject to preliminary approval by Russia's Federal Antimonopoly Service.
Mail.ru acquired 20% of UMA for 1.36 billion rubles in May 2018, so after exercising the option to buy the remaining 80% it will have 100% ownership of the BOOM music player that UMA developed.
BOOM has about 1 million subscribers, and the app's music library exceeds 35 million tracks. UMA's revenue for 2018 is estimated at 1.4 billion rubles.
Together with music subscribers on social networks VK and OK, "Mail.Ru Group will have about 2.1 million subscribers for its music offering, making it the largest content subscription user base in Russia," the company said.
"Going forward music will remain a key part of the user experience inside of the social networks but the company will also look for further ways to strengthen its relationships with copyright owners. Mail.Ru Group is also exploring various potential partnerships where UMA may further expand its content offering," Mail.ru said.