Kreatif Media Karya (KMK), a subsidiary of media conglomerate Emtek, announced that it will acquire a majority stake in local digital media firm KapanLagi Network (KLN) as part of a strategic partnership.
The deal, which was announced through an official statement, will see KMK acquire 50% plus one share of KLN, to make it the majority stakeholder in the company. KLN meanwhile, will in turn own 99.9% of shares in media firm Liputan Enam Dot Com, a subsidiary of KMK.
The move by the two companies is currently being processed and will take effect after obtaining approvals from the General Stakeholders Meeting of Liputan Enam Dot Com and KLN.
According to KMK CEO Adi Satriaatmadja, the strategic move will allow EMTEK as KMK’s holding company, to strengthen its grip in the field of digital media by taking over the numerous sites operating under KLN, including Kapanlagi.com, Merdeka.com, Bola.net and Vemale.com.
“We see that the future of media lies in the synergy of TV and digital media. It is hoped that this partnership can make KMK become a digital media group which has the most complete verticals – news, lifestyle, entertainment and sports – with the highest number of millennial users and be the leaders in technology and video and multimedia content,” he said.
KLN CEO Steve Christian added that through the partnership, the two companies were “becoming one to become number one” by serving over 100 million internet users in Indonesia.
Based on a report by Katadata, the deal will see Steve Christian hold the position of Chief Executive Officer at the new joint venture between the two companies, while KMK president director Karaniya Dharmasaputra will assume the position of Deputy CEO.
The deal marks the second change of ownership in the space of three years for KLN. In 2015, Singapore’s MediaCorp acquired 52 per cent stake in the KLN. It is believed that MediaCorp will still have a minority stake in KLN following the acquisition.
Emtek, which operates free-to-air television stations in the country, has invested in a number of startups since 2015 notably Rumah.com, Rumahdijual.com, Bola.com, Karir.com, Hijup.com, Kudo, Bobobobo.com, and Bukalapak.com.
In the first half of 2017, Emtek injected Rp 344 billion into “several VC firms”, including a minority investment in ride-hailing app Grab Inc.