Anghami co-founder and CEO Elie Habib (left) and OSN CEO Joe Kawkabani. Photo Credit: Anghami
About eight months after officially closing a partnership deal with OSN Group, Middle Eastern streaming service Anghami has scored an “up to $55 million commitment” from the same company.
Anghami (NASDAQ: ANGH) revealed that sizable backing via a brief release, after selling a majority interest to Panther Media Group-owned OSN back in November 2023. Per the official announcement, the fresh funding is beginning with an initial $12 million convertible note investment.
Transitioning to the corresponding regulatory disclosures, the $12 million in notes will mature in December 2027, accruing interest at a decidedly healthy 11% annually, per the documents.
Without diving too far into the specifics, Anghami must also prevent its “consolidated cash balance” from falling beneath $1 million “at any time,” the text indicates. And bearing in mind the “convertible” descriptor, if so inclined, OSN can convert the due cash (and interest) into ordinary ANGH shares whenever it likes, the document explains in more words.
Back to Anghami’s actual announcement, CEO Elie Habib in a statement touted the tie-up with OSN, which technically holds a majority interest in the music streaming company.
“The success of this partnership is a testament to the power of collaboration and innovation,” weighed in Habib, who doubles as the CEO of OSN+. “With this new investment from OSN Group, we are poised to elevate the digital entertainment experience for MENA audiences even further and expand our reach.”
Regarding the particulars behind that partnership, the mentioned November 2023 agreement uniting OSN and Anghami set the stage for the April rollout of a revamped entertainment offering. By its own description, Anghami rebuilt the OSN+ video platform from the ground up.
And between its April debut and October 2024, the service enjoyed “41% growth in video streaming subscribers,” per Anghami. Meanwhile, the overall subscriber base consists of “120 million registered users and 3.5 million paid subscribers,” according to the business.
Last month saw Anghami disclose an 18% ARPU spike among direct subscribers to that point in 2024, besides “28% growth in streaming engagement.”
Despite these results and the just-revealed $55 million capital commitment, however, Anghami stock slipped by almost 5% today to 81 cents per share. On top of representing a market cap of about $55 million, the price reflects a nearly 25% falloff since 2024’s beginning – and an even bigger decrease from when ANGH neared $2 at the time of the OSN deal’s April closure.