Look who’s stalking M1

GUESS what’s happening in the media industry – Singapore Press Holdings Ltd (SPH) is said to be joining forces with Keppel Corp to take over M1 Ltd, the smallest of wireless operators in the island state.

According to a report, the deal could be reached and an offer made to the shareholders of M1, who include Malaysia’s Axiata Group Bhd, in the next few days. The deal comes hot on the heels of Comcast Corp winning a bid for Britain’s biggest pay-TV operator, Sky, in a deal worth £30.6bil (RM165bil).

If the SPH-Keppel joint bid succeeds, it will chart new territory in the evolving world of the media industry – be it in the print or television segments.

The operating environment for newspapers in the region has been difficult, especially in the last five years. Digital giants, particularly Facebook and Google, have taken off a chunk of advertising money that would have otherwise gone to the print media.

The likes of Netflix and Amazon are taking away market share and subscribers from pay-TV operators.

So, what do the players left in the print media and television operators – whether they are in the paid or free-to-air model – do next?

To get an inkling of what’s to come, one needs to look at what’s happening in Britain and Singapore.

Comcast is a cable company that provides high-speed Internet and voice connectivity to homes. It also has a media unit in NBCUniversal that owns broadcast stations and theme parks.

Taking over Sky will help Comcast in its fight against Netflix and Amazon in the US. Sky has 23 million subscribers spaced out across Europe and the United Kingdom – from Ireland to Italy.

SPH has a 13.5% stake in M1 while Keppel, which is into the telecommunications business, has a 19.3% in the wireless operator. A deal would give them the ammunition to launch a full spectrum of services for consumers of M1 and SPH.

In Malaysia, the listed media companies are languishing on the back of declining bottom lines. Most are asset-rich but the core operating business is not yielding the desired results because of competition.

Convergence is certain to take place. If based on what’s happening in Singapore and Britain, it’s the telecoms companies that are likely to flex their muscles on the media outfits.