Ac­qui­si­tion makes firm largest Malaysian dig­i­tal me­dia firm

New Straits Times - - Front Page - KUALA LUMPUR

THE coun­try‘s largest in­te­grated me­dia com­pany, Me­dia Prima

Bhd, dou­bles its dig­i­tal au­di­ence to 10.4 mil­lion with the ac­qui­si­tion of REV Asia Hold­ings, one of the re­gion‘s lead­ing dig­i­tal me­dia groups. These two gi­ants, whose com­bined lo­cal reach is sur­passed only by Face­book and Google, are set

to trans­form the me­dia land­scape.

ME­DIA Prima Bhd, al­ready the coun­try’s largest in­te­grated me­dia group, will be­come the largest Malaysian dig­i­tal me­dia com­pany fol­low­ing its ac­qui­si­tion of REV Asia Hold­ings Sdn Bhd.

Its dig­i­tal au­di­ence reach will jump from five mil­lion to 10.4 mil­lion and come in third over­all in the coun­try af­ter Google (15.7 mil­lion) and Face­book (14.1 mil­lion).

Me­dia Prima yes­ter­day an­nounced that its sub­sidiary, Me­dia Prima Dig­i­tal Sdn Bhd (MPD), was ac­quir­ing 100 per cent of REV Asia Hold­ings for RM105 mil­lion to ex­pand its dig­i­tal con­tent and dig­i­tal me­dia plat­forms. REV Asia Hold­ings, a sub­sidiary of Rev Asia Bhd, is one of South­east Asia’s lead­ing dig­i­tal me­dia groups.

Its sta­ble of brands cover a wide va­ri­ety of seg­ments, in­clud­ing en­ter­tain­ment, life­style and English, Malay and Chi­nese news.

“The strate­gic ac­qui­si­tion of REV Asia Hold­ings demon­strates our firm com­mit­ment to cap­i­talise on the grow­ing de­mand for dig­i­tal con­tent amongst con­sumers by ex­pand­ing our reach and fur­ther en­hanc­ing the group’s com­pe­ten­cies in dig­i­tal con­tent mar­ket­ing, dig­i­tal con­tent cu­ra­tion and dig­i­tal na­tive mar­ket­ing ads,” Me­dia Prima group chief fi­nan­cial of­fi­cer Mo­hamad Ariff Ibrahim said in a state­ment.

REV Asia Hold­ings has sig­nif­i­cant reach among con­sumers aged be­tween 18 and 35, and spe­cialises in na­tive con­tent-based advertising, which gar­ners higher mar­gins.

“Their deep ex­per­tise in pro­duc­ing con­tent for the age group is an ad­di­tional value to Me­dia Prima, and will al­low the group to ex­pand its me­dia of­fer­ings to gen­eral con­sumers, me­dia buy­ers, ad­ver­tis­ers and pre­mium pub­lish­ers,” said MPD chief ex­ec­u­tive of­fi­cer Rafiq Razali.

“This bodes well for the group as we cap­i­talise on the in­creas­ing im­por­tance of dig­i­tal con­tent amongst ad­ver­tis­ers.”

The Me­dia Prima Group’s ex­ist­ing in­ven­tory of dig­i­tal prod­ucts and con­sumer-based ser­vices in­clude ton­ton, Ful­lAMark, CJ Wow Shop and mo­bile apps, which will ben­e­fit from the ad­di­tional reach pro­vided by this ac­qui­si­tion.

REV Asia Hold­ings recorded rev­enue and profit af­ter tax of RM23.5 mil­lion and RM4.2 mil­lion for the fi­nan­cial year end­ing Dec 31, 2016, rep­re­sent­ing growth of 32 and 27 per cent, re­spec­tively, com­pared with the pre­vi­ous fi­nan­cial year.

Its manag­ing direc­tor, Voon Tze Khay, said the com­pany was ex­cited to join the Me­dia Prima fam­ily and work to­gether to trans­form the me­dia land­scape in Malaysia.

“Me­dia Prima is a true leader in Malaysia’s me­dia in­dus­try with a strong track record of suc­cess in of­fer­ing in­te­grated me­dia of­fer­ings.

“To­gether, we are con­fi­dent in our abil­ity to ex­pand our reach whilst so­lid­i­fy­ing our com­bined po­si­tion as the num­ber one dig­i­tal me­dia group in the coun­try,” he said.

REV Asia Bhd co-founder and direc­tor Patrick Grove said REV Asia Hold­ings and MPD were highly com­ple­men­tary busi­nesses and there was a strong ra­tionale un­der­pin­ning the sale.

“I look forward to watch­ing Rev Asia Hold­ings grow ex­po­nen­tially with MPD.”

Me­dia Prima has, since last year, launched sev­eral key ini­tia­tives to cap­i­talise on the grow­ing de­mand for dig­i­tal ser­vices and on­line com­merce.

These in­clude CJ Wow Shop (home shop­ping via tele­vi­sion broad­cast and on­line), Su­per Deals (com­bin­ing po­ten­tial of e-com­merce and ra­dio) and a re­vamp of ton­ton (Malaysia’s lead­ing over-the-top sub­scriber-based video streaming por­tal).

The group’s other dig­i­tal ini­tia­tives in­clude the in­ter­ac­tive learn­ing por­tal Ful­lAMark as well as pop­u­lar mo­bile ap­pli­ca­tions cap­i­tal­is­ing on Me­dia Prima’s in­tel­lec­tual prop­er­ties (Ejen Ali and JRev olusi game se­ries, and Jalan-jalan Cari Makan), which al­to­gether have more than two mil­lion down­loads.

The new ini­tia­tives have pro­vided Me­dia Prima with a new rev­enue stream (busi­ness to con­sumer) in line with the group’s strat­egy to be less de­pen­dent on advertising ex­pen­di­ture.

Mo­hamad Ariff Ibrahim

Voon Tze Khay

Patrick Grove

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