iMedia announced today (March 23) it has signed a term sheet to acquire up to an 80% stake in Headline Media Sdn Bhd. The acquisition is set to further boost the group’s media ecosystem and expand its reach within Malaysia, especially among the English-speaking community. This follows the announcement of iMedia’s acquisition by Catcha Digital Berhad.
This acquisition is expected to contribute meaningfully to iMedia’s projected profit before tax of RM11 million in 2023.
Headline Media, co-founded by Rydah Tan, Chan Jin Wen, Dylan Tan, Esther Lee and Sarah Yeoh in 2020, currently owns and operates four leading digital media brands, with WeirdKaya (weirdkaya.com) as its flagship brand. WeirdKaya 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. Headline Media’s other brands include LokLokWords (loklokwords.com), Malaysia’s largest content platform targeting Chinese independent school students, EzLokal Food, a Malay lifestyle and food review platform, and OnlyFood KL, Malaysia’s first data-driven and honest food review platform.
iMedia has also signed an Exclusive Sales Representation Agreement that will see iMedia 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 acquisition is well-aligned with iMedia’s growth strategy which focuses on M&A and 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.
Rydah Tan, CEO and Co-founder of Headline Media, said, “We see this partnership as a mutually beneficial arrangement for both parties as we can leverage on each other’s strengths to maximise the outcome for both our clients and our 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.”
Voon Tze Khay, CEO and Co-founder of iMedia, said: “We have been looking to grow the English-speaking audience within our digital portfolio and Headline Media is a perfect fit. 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.”