Megafon will acquire 33.8% in Digital Media Holding LLC (DMH), the parent company of the Start video service. This information was reported by RBC with reference to representatives of the parties.
The operator is ready to invest up to 5 billion rubles in service during the next three years. Start will use the raised funds to increase the production of original content and the development of new related business areas.
The value of the deal was not disclosed. According to the publication, it could amount to 2–2.7 billion rubles, since a source in the online movie theater market estimated Start at from 6 to 8 billion rubles.
According to a representative of Megafon, the company sees great prospects in the online cinemas market: “The creation of original content is a growth driver for the OTT market in Russia”.
According to the company’s own estimates, Start has over 1 million paying users. According to TelecomDaily estimates, this online cinema showed the most significant revenue growth in the first half of the year - the figure increased by 362.9% compared to the same period in 2019.
Julia Mindubaeva, CEO of Start
Sistema Public Joint Stock Financial Corporation