Malaysian media giant Media Prima announced it has agreed to buy digital media company REV Asia from Catcha Group and Youth Asia for US$24.2 million. Catcha is co-founded and chaired by Grove, while Youth Asia is owned by Ng – who’s also managing partner of VC firm 500 Startups – and Neoh, co-founder of Fave (formerly Groupon Malaysia).
Media Prima is acquiring REV Asia to boost its digital content creation business amid difficulties in its traditional media segment, which includes TV, radio stations, and newspapers.
“This is a major milestone for both parties as it will see the combined group reach up to 10.4 million visitors,” Media Prima said, noting the figure falls behind only Google’s 15.7 million and Facebook’s 14.1 million visitors in Malaysia. It didn’t specify if the figures are on a monthly basis, although early this year, REV Asia told Tech in Asia it had roughly 5 million unique site visitors per month.
Led by Tze Khay Voon, REV Asia has 12 media sites targeting Malay, Chinese, and English-speaking audiences, covering news as well as a wide range of entertainment and lifestyle topics. Voon has been associated with Catcha for over a decade, holding roles across sales, advertising, and strategy.
Media Prima told Bursa Malaysia that REV Asia recorded a net profit of nearly US$970,000 as of the financial year ended December 31, 2016, while its assets amounted to US$6.3 million.
Rev Asia plans to distribute the bulk of the cash proceeds from the sale of its 70% stake in Rev Asia Holdings Sdn Bhd to its shareholders as cash dividend three months from the completion of the disposal of the stake to Media Prima Bhd.
Rev Asia said it was selling its 15.828 million shares in Rev Asia Holdings, which is involved in digital media, to Media Prima for RM73.5mil. Of the amount, RM59mil will be distributed to shareholders.
Youth Asia Sdn Bhd is selling the other 30% stake in Rev Asia Holdings for RM31.50mil to Media Prima.