Radio Mirchi operator ENIL acquires Gaana for Rs 25 lakh

New Delhi: After merger talks with Airtel Wynk fell through, Times Internet and Tencent-backed Gaana consolidated with Times Group’s listed subsidiary Entertainment Network India (ENIL) in December 2023. 

The acquisition is valued at Rs 25 lakh according to media reports. This appears to be a distress sale as Gaana, which had raised over $200 million, was last valued around $580 million. 

Times Internet, which previously held a majority stake in Gaana, has been injecting debt into the platform. In July 2023, Gaana received Rs 100 crore in debt from Times Internet, converted into equity. Another Rs 10 crore in debt was committed recently, with ENIL also investing Rs 15 crore in Q1 FY25.

Gaana's revenue plummeted by over 80% to Rs 12.5 crore in FY24, and the platform is now behind a paywall with a subscription fee doubled to Rs 599. ENIL's consolidated revenue fell 25.79% Q-o-Q to Rs 113.46 crore, resulting in a Rs 5.45 crore loss in Q1 FY25.

Gaana has experienced significant management changes, with its CEO Prashan Agarwal replaced by Sandeep Lodha in mid-2021, and Lodha departing in July 2023. The platform is now managed by ENIL’s CEO Yatish Mehrishi.

Times Internet has been divesting its portfolio as part of a broader asset split. Recent sales include ETMoney to 360 One for $44 million, MX Player’s assets to Amazon, MX TakaTak to ShareChat, and DineOut to Swiggy. In 2022, it sold MensXP, iDiva, and Hypp to Mensa.