Warner Bros. Discovery is taking a minority stake in Dubai-based OSN Streaming Ltd. in a bid to capture a slice of the fast-growing Middle Eastern entertainment market.
Warner Bros. will pay $57 million for about a third of OSN Streaming, Joe Kawkabani, chief executive officer of parent OSN Group, said in an interview.
The transaction will be done in stages and is still subject to regulatory approvals, according to a joint statement. OSN provides global and local TV series and films, and the unit Warner Bros. is investing in offers streaming services.
The deal will see both firms invest in locally produced content as they seek to court regional viewers, as well as explore synergies, according to Kawkabani.
“Whether it’s a production of content, or expanding our content library, or creating better content, this is really the angle of the deal,” Kawkabani said.
The investment cements a series of partnerships between both firms. OSN inked a multi-year licensing agreement with Warner Bros.-owned HBO in 2022 to exclusively broadcast and stream content from the American pay TV network. It also secured the exclusive rights to Warner Bros.’ film catalogue last year.
“I think now we can look into ways where we can expand that offering,” Kawkabani said, adding that the new partnership would probably facilitate all of these discussions, but they would be done on separate commercial terms.