According to media reports, Gaana, the music streaming platform once backed by Times Internet and Tencent, has been acquired by Entertainment Network India (ENIL), a subsidiary of the Times Group, for INR 25 lakh. 

The acquisition, which took place in December 2023, has largely gone unnoticed by the media.

This was brought to light when ENIL, known for operating the popular FM radio brand 'Radio Mirchi,' disclosed the acquisition in its recent filings with the National Stock Exchange (NSE). 

This development marks a significant shift for Gaana, which had previously raised over USD 200 million in funding and was last valued at around USD 580 million, according to Entrackr data.

The acquisition suggests a distress sale, with Gaana seemingly abandoning hopes of securing a third-party buyer. The specifics of the deal, particularly regarding Tencent's stake in the 14-year-old platform, remain unclear.

In an effort to sustain Gaana's operations, Times Internet has been providing financial support through regular debt infusions. In July 2023, the platform received INR 100 crore in debt from Times Internet, which was later converted into equity shares. 

This week, regulatory filings revealed that Times Internet has committed an additional INR 10 crore in debt to Gaana. ENIL's CEO, Yatish Mehrishi, noted that the company also invested INR 15 crore in the first quarter of FY25.

This acquisition is part of a broader trend of asset sales by Times Internet amid the division of Times Group assets between Samir Jain and Vineet Jain, promoters of Bennett, Coleman & Co, cite reports. 

Over the past three years, Times Internet has divested several subsidiaries, including ETMoney, MX Player, MX TakaTak, DineOut, MensXP, iDiva, and Hypp.