Electronic government services provider MyEG Services Bhd has recently proposed to purchase a controlling stake in popular food review website Eat Drink KL.
Terms of the deal were not disclosed, but it is reportedly said that Eat Drink KL will become a subsidiary of MyEG upon the completion of the paperwork.
That is Eat Drink KL will likely be parked under MyEG’s wholly-owned investment holding company MyEG Capital Sdn Bhd, which in turn holds a controlling stake in online advertising firm MyEG Ad Networks Sdn Bhd, auto classified Car X Services Sdn Bhd, diversified media solutions provider Picasso Media Sdn Bhd and online television provider Hurr Tv Sdn Bhd.
At present, MyEG Capital contributes a negligible revenue to MyEG Group, which derives the bulk of its revenue from developing and implementing e-government services, both with concession and non-concession methods.
The firm, started since February 2009, is currently wholly owned by Sean Yoong, a former journalist at Associated Press for 14 years.
At the same time, Yoong is also writing for EatDrink, another food review website owned by media company The Expat Group via TEG Digital Sdn Bhd. The company publishes The Expat magazine since 1996, providing information about Malaysia to the English-speaking audience.
MyEG’s latest move comes after Media Prima Bhd acquiring Rev Asia Bhd’s digital media business for RM105 million.
Through the acquisition of Rev Asia, Media Prima will gain control of all its subsidiaries — Rev Digital, Rev Entertainment, Rev Social Malaysia, Rev Lifestyle and Rev Social International. Rev Asia Holdings’ brands are SAYS.com, JUICE, ViralCham, Rojaklah, OhBulan, SirapLimau, KongsiResipi, MyResipi, 8Share, Hanger and Klips.
The acquisition will provide Media Prima with the third-largest audience locally, after Google and Facebook with audiences of 15.7 million and 14.1 million respectively.
MyEG shares closed unchanged at RM2.30 yesterday, with a market capitalisation of RM8.95 billion.
By Vivian Foo, VCNewsNetwork