Industry welcomes Media Prima's acquisition of The New Straits Times

According to a statement from MPB, the enlarged entity of MPB and NSTP will create a “truly integrated media group offering advertisers the widest reach in terms of TV viewership, radio, outdoor, new media and print via a full range of multi-media channels”.

The enlarged MPB group will be the only media company in Malaysia offering television, print, radio, new media and outdoor advertising.

The editorial, management and board of MPB and NSTP will remain mutually independent and exclusive as per other subsidiaries of MPB. The identities and brands of its individual print, television and other media platforms will also be retained.

The two media companies will be consolidated through a share swap. The resulting entity is expected to generate over RM1 billion (US$297 million) in annual revenue with net profits exceeding RM140 million (US$45 million).

“MPB’s current equity stake in NSTP does not permit us to translate our vision to unlock both MPB and NSTP’s full potential and steer it quickly enough in the strategic manner required to take advantage of the opportunities which we come across. So the proposed acquisition is a decisive move to chart our growth strategy,” said MPB’s chairman, Datuk Johan Jaaffar.

Prashant Kumar, CEO of Universal McCann in Malaysia, believes the impending deal will bring about operational efficiencies the same way as when MPB acquired the nTV7 television network in the past.

For media agencies and advertisers alike, Kumar notes that MPB can now make further inroads to delivering “cross-platform” opportunities and “value” through its assets, something the media group has been promising and working on but has had “limited traction” with.

Andreas Vogiatzakis, CEO of OMG Malaysia, noted that the deal was a good sign for NSTP, as MPB gives emphasis on developing leadership brands in its media offerings, as evident on how the media giant has revamped its TV9 and radio platforms.

Vogiatzakis suggested that NSTP’s product offerings would get the same treatment. “Knowing MPB, it’s a not a matter of if, only a matter of when,” he said. “MPB understands the parameters of success and will drive the development of good, quality content on NSTP which will meet its targeted consumer’s needs to become marketing-leading properties.”

Stephen Li, CEO of MEC South and Southeast Asia and Australasia, said: “At a time when creating any kind of audience loyalty is proving increasingly difficult, giving themselves additional opportunities to deliver cross-channel solutions can only be good for MPB.”

“Whether the quality of the content can continue to be good enough to actually drive this ‘stickiness’ remains to be seen, but MPB should be as well placed as anyone to do this,” added Li.

Speculation on the acquisition has been gathering pace in Malaysia since August.