PETALING JAYA: Integrated digital media solutions provider iMedia has signed a term sheet to acquire up to an 80% stake in Headline Media Sdn Bhd, which is set to further boost the former’s digital media ecosystem and expand its reach within Malaysia, especially among the English-speaking community.
The group said that the acquisition is expected to contribute meaningfully to its projected profit before tax of RM11 million in 2023.
iMedia has also signed an exclusive sales representation agreement that will see it responsible for the acceleration of revenue for the four brands under Headline Media. As part of the acquisition, all social media assets from the company will be fully integrated into iMedia’s ecosystem.
The group added that the acquisition is well-aligned with its growth strategy which focuses on mergers and acquisitions as well as operational improvements to strengthen its digital media portfolio.
With the addition of Headline Media's reach, iMedia's combined network of owned and managed brands will reach over 13.2 million Malaysians every month.
CEO and co-founder Voon Tze Khay said that the group has been looking to grow the English-speaking audience within its digital portfolio.
“We are truly excited about the prospects of Headline Media and the synergies we will realise from this acquisition. In less than 3 years, Rydah and his team have done a tremendous job in scaling the company to be one of the leading digital media portfolios in Malaysia. We believe we will be able to dramatically accelerate the revenue growth of Headline Media,” he said in a statement today.
Meanwhile, Headline Media CEO and co-founder Rydah Tan said that the partnership is “a mutually beneficial arrangement for both parties” as both companies are able to leverage on each other’s strengths to maximise the outcome for clients and readers.
“We are excited to join iMedia in its mission to build the No.1 integrated digital media solutions group in Southeast Asia. iMedia’s sales and content expertise in the digital media sector is unparalleled,” he remarked.
Headline Media which was founded in 2020, currently owns and operates four leading digital media brands. Its flagship brand, WeirdKaya (weirdkaya.com), is one of Malaysia's fastest-growing English social news sites, with a combined monthly reach of more than 6 million across all social media platforms. Other brands include LokLokWords (loklokwords.com), a content platform targeting Chinese independent school students, EzLokal Food, a Malay lifestyle and food review platform, as well as OnlyFood KL, a data-driven and honest food review platform.
Recently, Catcha Digital Bhd has completed the acquisition of the entire equity interest of iMedia Asia Sdn Bhd.
