The month of May 2017 is certainly an exciting one for anyone within the Digital Industry. With the RM105 million acquisition of REV Asia Bhd, Malaysia’s leading digital media group, by Media Prima Digital Sdn Bhd & Youth Asia Sdn Bhd, an indirect wholly-owned subsidiary of Media Prima Bhd, on their announcement on May 8th; and 9 days later MyEG Services Bhd spokesman made an official announcement of their interests to seal the deal of buying the controlling stake of popular food review website in Malaysia, eatdrinkkl.blogspot.com/ .
However, MyEG spokesman did not review or elaborate on the details and requested to wait for the official announcement which will be made soon. On the other side, Sean Yoong, the owner of Eat Drink KL also declines to comment on the stake purchase by MyEG in Eat Drink KL.
No matter, this news are enough to stir some buzz around the market, making these acquisitions to be raised in BFM Morning Broadcasts, which is a reputable and respectable Business Radio Station in Malaysia.
According to The Edge Financial Daily, their sources indicates that Eat Drink KL will become a subsidiary of MyEG under the proposed deal and now is just the stage of awaiting the completion of paperwork. They had also indicated that this popular food review website will likely to parked under MyEG’s wholly-owned investment holdings company, also known as MyEG Capital Sdn Bhd, which also holds a controlling stake in online advertisement firm MyEG Ad Networks Sdn Bhd, auto classified website Car X Services Sdn Bhd, diversified media solutions provider Piccasso Media Sdn Bhd, and an online television provider Hurr TV Sdn Bhd.
You could visit http://www.theedgemarkets.com/article/myeg-close-buying-eat-drink-kl for the article written by Sulhi Azman in The Edge Financial Daily.
According to RAM Ratings, Media Prima Bhd’s purchase of Rev Asia Holdings Sdn Bhd for RM105mil is a positive over the near term and the proposed acquisition was expected to provide an avenue for Media Prima to reduce its dependence on traditional media assets and/or strengthen its media outreach.
In the same article by The Star Malaysia, RAM Ratings also indicates that Media Prima strategy on acquiring REV Asia will enable them to capitalize REV Asia’s existing strengths as well as expanding its digital reach to become the largest Malaysian Digital Platform. The younger audiences of REV’s sites will also further provide Media Prima access to the urban, tech-savvy segment of the population, complementing Media Prima current more mature audiences, enabling them to provide products or services across a wider range of platforms.
RAM Ratings also pointed out the issue of declining traditional advertising expenditures and growing popularity of digital platforms in Malaysia where estimated a 9% decline of real ADEX year on year in 2016 of Media Prima. The first quarter of 2017, a report from Nielson also reported that non-discounted ADEX has dropped further than 15% and expected it to stay muted going forward. Print circulation across its 3 papers (NST Malaysia, Berita Harian & Harian Metro) was down too, twice, on 2016, a decline of 19.4% for the first half and 9.6% in the second half of 2016.
Notably, both Media Prima Bhd and MyEG Services Bhd are diversifying into the digital platform to further future-proofing and enhancing its position in the advertising market. The potentials of the digital marketing are too significant to ignore. With the year 2014 figures alone, Malaysian spent an average of 8 hours on the platform either through their mobile or a desktop or laptop.
With the recent investments buzz created by these 2 reputable companies, entrepreneurs will surely wakeful to consider moving away from traditional media advertising to more digital platforms.
Welcome to the digital age of advertising.