Case Study: Media Prima
According to the Acquiring and Merging businesses, Hennessy (1996, p. 247) indicates that it’s beneficial for a corporation to develop the business by merging with other similar businesses as its growth strategies.
There are many advantages of growing a business through a merger, such as a corporation able to purchasing the products or services at a cheaper price than developing these by themselves, and decrease the costs through shared marketing budgets, and increasing the purchasing power of the company. Hence, the organization is able to expand the business internally with extra accessing funds even the company is underperforming (Minority Business Development Agency, 2015).
As the main media organization in Malaysia, Media Prima is officially a horizontal merger company while the organization was confirmed had completed the acquisitions on the other media groups which are in the same field in order to develop more entertainment and services. There are few companies that acquired by Media Prima a few years ago, such as Malaysia’s leading outdoor advertising agency Big Tree Outdoor Sdn Bhd, the organization acquired this company on 30 March 2007 in order to expand the organization into the outdoor sector. In 2005, the organization has completed the acquirement of a television station which named as CH-9 Media Sdn …show more content…
The group does not only offers the advertising services, but also the outdoor advertising such as bridges, urban ring roads, light boxes, highway routes, parking lots, and so on. They started the concept of outdoor advertising in Malaysia in 2001 and completely acquired by Media Prima in 2007 (Bloomberg Business, 2015). Meanwhile, Media Prima also acquired Kurnia Outdoor with 14 million dollars, which is an organization that provides the outdoor advertising,
There are many advantages of growing a business through a merger, such as a corporation able to purchasing the products or services at a cheaper price than developing these by themselves, and decrease the costs through shared marketing budgets, and increasing the purchasing power of the company. Hence, the organization is able to expand the business internally with extra accessing funds even the company is underperforming (Minority Business Development Agency, 2015).
As the main media organization in Malaysia, Media Prima is officially a horizontal merger company while the organization was confirmed had completed the acquisitions on the other media groups which are in the same field in order to develop more entertainment and services. There are few companies that acquired by Media Prima a few years ago, such as Malaysia’s leading outdoor advertising agency Big Tree Outdoor Sdn Bhd, the organization acquired this company on 30 March 2007 in order to expand the organization into the outdoor sector. In 2005, the organization has completed the acquirement of a television station which named as CH-9 Media Sdn …show more content…
The group does not only offers the advertising services, but also the outdoor advertising such as bridges, urban ring roads, light boxes, highway routes, parking lots, and so on. They started the concept of outdoor advertising in Malaysia in 2001 and completely acquired by Media Prima in 2007 (Bloomberg Business, 2015). Meanwhile, Media Prima also acquired Kurnia Outdoor with 14 million dollars, which is an organization that provides the outdoor advertising,