Singaporean media conglomerate MediaCorp is rumoured to be seeking the acquisition of Indonesian digital media venture KapanLagi Network.
According to industry sources, Singapore-based MediaCorp, a government-linked corporation (GLC) wholly-owned by Temasek Holdings, has signed an MoU (memorandum of understanding), committing to an acquisition of the Indonesian company KapanLagi Network (KLN).
KLN’s is the largest online media company in Indonesia, based on reach as measured by Comscore. Steve Christian, KLN’s CEO and co-founder, has so far declined to publicly comment on the veracity of the rumour.
Since November 2014, there have been several rumours regarding KLN’s possible acquisition by MediaCorp. Bareksa, an Indonesian investment portal, reported that MediaCorp was seeking equity in KLN’s news portal, Merdeka. Reportedly, the deal also resulted in the possession of KapanLagi and Bola.net. Allegedly, the MediaCorp team had done due diligence during a visit to Merdeka’s office.
Other firms interested in acquiring stake or even a full ownership of KLN include the EMTEK Group. Apparently, the inability of EMTEK Group to meet the asking price for KLN, resulted in this deal falling through.
The issue of acquisition gained further veracity in 2014, with KLN and Channel NewsAsia (CNA), a MediaCorp subsidiary, collaborating to produce Start-UP, a TV program, in Indonesia.
MediaCorp is currently on the course of positioning itself as the leading media conglomerate in Southeast Asia with about 250 million viewers in the region. KLN’s acquisition would further cement this position.
With KLN’s merger with the Fimela Group in 2014, KLN makes for a very attractive acquisition, given its pre-eminence in the Indonesian marketplace.
While the rumours of a MediaCorp acquisition remain unconfirmed, KLN makes for an attractive acquisition target and a strategic asset for any media conglomerate interested in establishing itself in Indonesia and the wider region.