Bangsar, May 9 – Media Prima Bhd, Malaysia’s largest integrated media group today announced the landmark acquisition of 100 percent equity interest in REV Asia Holdings Sdn Bhd by the Group’s wholly owned subsidiary, Media Prima Digital Sdn Bhd (Media Prima Digital).
The acquisition, at a cost of RM105.0 million, is yet another major milestone in Media Prima’s strategy to focus on expansion in digital content and digital media platforms.
It will see the Group’s digital platform audience reach of up to 10.4 million (5 million pre-acquisition) thus firmly establishing Media Prima as the third largest digital media company in Malaysia after Google and Facebook with 15.7 million and 14.1 million respectively.
Rev Asia Holdings, a subsidiary of Rev Asia Berhad is one of Southeast Asia’s leading digital media groups.
The company possess a strong track record in social media and online marketing through an established portfolio of well-known online consumer brands that cover a wide variety of segments including entertainment, lifestyle and social-millennial English, Malay and Chinese news.
Mohamad Ariff Ibrahim, Group Chief Financial Officer of Media Prima said the acquisition is timely as the Group has embarked aggressively on digital based initiatives to reduce dependency over traditional revenue base.
“At Media Prima, we are big believers in digital content and its growth prospects for the future. 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.”
“REV Asia Holdings has significant reach amongst consumers aged 18 – 35 years given their strong expertise in curating content for this lucrative market segment. The acquisition is expected to result in the growth of revenue contributions from Media Prima’s digital platform exponentially whilst expanding on our reach and platforms further. With this acquisition also, Media Prima will be one of the fully integrated media company and largest digital publisher in this region,” he said.
REV Asia Holdings recorded revenue and profit after tax of RM23.5 million and RM4.2 million for the financial year ending 31 December 2016, representing a growth of 32 and 27 percent respectively compared to the previous financial year.
Rafiq Razali, Chief Executive Officer of Media Prima Digital said Media Prima is expected to derive potential synergistic benefits as the Group can expand its media offerings to general consumers, media buyers, advertisers and premium publishers.
He added that the immediate impact of this acquisition will be a massive base to up-sell Media Prima’s digital products and services by having a wider digital audience base in Malaysia.
“Media Prima has in the Group’s inventory a slew of digital products and consumer based services including tonton, FullAMark, CJ Wow Shop and mobile apps which will benefit from the additional reach provided by this acquisition,” said Rafiq.