As part of the agreement, OSN Group, the parent company of OSN+, will pump investments worth $50 million into Anghami and acquire a majority stake in it.
The new entity will generate $100 million in revenues, have over 120 million registered users, and 2.5 million paying subscribers, according to a joint statement from both companies.
The music streaming app Anghami currently has over 73 million users mostly from MENA, Europe, and the U.S.
With regulatory and antitrust clearances pending, the transaction is anticipated to close early in 2024.
Customers of the merged entity will be able to watch a movie and listen to music on the same app.
The Kuwaiti conglomerate that owns the majority of OSN Group will keep operating its pay TV division on its own.
Two Lebanese businessmen launched Anghami in 2012 and became the region's top local competitor to Spotify and Deezer SA.
Currently situated in Abu Dhabi, Anghami received $5 million in funding earlier this year from a Saudi media company.
While OSN+ boasts over 18,000 hours of content and exclusive partnerships with HBO, NBC Universal, Paramount, and top Arab and Turkish studios, Anghami features a catalog of over 100 million songs and podcasts.