Warner Bros. is making a big move into the Middle Eastern streaming scene by purchasing a minority stake in Dubai-based OSN’s streaming unit, according to a statement by Kuwaiti owner Kuwait Projects Company (Kipco). The media giant is investing USD 57 mn for c. 30% of the company, a transaction that will roll out in stages and still needs regulatory approval, according to a separate disclosure to the Kuwaiti exchange (pdf).

The rationale? The global media giant is choosing to acquire local players in new markets rather than build from the ground up in a bid to avoid more fragmentation in a “very crowded stream marketplace,” Bloomberg reported citing WB Executive Vice President Jamie Cooke.

The last venture in the region? For Warner Bros., there is “probably not” going to be more such acquisitions in the region, Cooke added. “This is for me [Cooke] the final piece of the puzzle for our whole ecosystem in the region, we just need to make them all work together.” The company also acquired 100% of Turkey’s BluTV in 2023 following an initial 35% investment in 2021.

What’s next? “Through this [transaction], we’re delighted to announce that both OSN and Warner Bros. Discovery will invest in high-quality, locally produced content, ensuring a richer and more diverse offering for viewers,” said Cooke.

Deepening an existing partnership: OSN secured exclusive streaming rights to Warner Bros.’ film catalog last year, building on its 2022 licensing agreement for exclusive HBO content. OSN Streaming also owns a majority stake in Anghami.

ADVISORS- Kamco Investment and the Abu Dhabi office of Skadden, Arps, Slate,Meagher & Flom LLP were advisors to OSN Group, and A&O Shearman for Warner Bros.

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