LSE-listed Mail.Ru Group, which owns Russia’s largest social networks Vkontakte (VK) and Odnoklassiki (OK), has signed an option agreement to complete the acquisition of United Media Agency (UMA), an aggregator and distributor of digital content.
UMA is, in particular, the owner of music rights in Vkontakte and of BOOM, a top music app.
“Mail.Ru Group’s relationship with UMA has helped normalize relationships with copyright holders and create the biggest music eco-system on the Russian market,” the group stated.
Adding BOOM’s 1 million subscribers to the music subscribers of VK and OK, the group will own “the largest content subscription user base in Russia,” reaching 2.1 million music subscribers in total.
“Going forward, music will remain a key part of the user experience inside of the social networks,” stated Mail.Ru Group, which “will also look for further ways to strengthen its relationships with copyright owners” and “explore various potential partnerships where UMA may further expand its content offering.”
Mail.Ru Group acquired 20% of UMA in May 2018. The option period for the acquisition of the remaining 80% will end on May 21, 2020. The sellers are White Peak Investments (IOM) PCC Limited, Crescent & Star Investment Company LLC and unnamed other shareholders.
The transaction, which amounts to $97 million, is still subject to the preliminary approval from Russia’s Federal Antimonopoly Service.
Source: Mail.Ru Group
