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Singapore media mergers of 2004 and 2017

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On 31 December 2004, MediaCorp and SPH MediaWorks agreed to merge effective the following day.[1][2] The merger is no longer in effect on 29 September 2017, when SPH divested from Mediacorp.[3]

Background

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On 5 June 2000, then Ministry of Information and the Arts announced the start of gradual media competition, with MediaCorp allowed to own a newspaper and Singapore Press Holdings (SPH) allowed to own two TV and two radio channels.[4][5]

On 8 June 2000, SPH, the country's main newspaper publishing company, set up a television arm called SPH MediaWorks to provide competition for MediaCorp, which dominated the media industry in Singapore.[6] Instead, the rival channels were locked in a ratings battle, leading some politicians to comment that the local market was not big enough to have two broadcasting companies. By 2004, SPH MediaWorks had raked up some $44.5 million in losses.[2]

In addition, MediaCorp was awarded a licence on 9 June 2000 by the Ministry of Information and the Arts to operate a newspaper (since known as Today).[7]

2004: SPH and MediaCorp media market merger

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On 17 September 2004, SPH announced that MediaWorks would merge with MediaCorp's TV division. A new holding company MediaCorp TV would be created with MediaCorp owning 80 percent and SPH holding the remaining 20 percent. In addition, MediaCorp Press would continue to be owned by MediaCorp; holding a 60 percent stake with 40 percent to be sold to SPH. Channel i would be reviewed for commercial viability while Streats will be merged with Today.[8] The merger was approved by then Media Development Authority (MDA) on 6 December 2004.[9]

Result

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Many MediaWorks staff were transferred over while others were retrenched. 429 staff were affected by the merger, of which 200 staff are to be in MediaCorp, with 132 in SPH and 97 retrenched.[10] Of the 200 staff to be posted in MediaCorp, 189 accepted the offers given.[11]

SPH MediaWorks Channel i, the English language channel, ceased broadcasting on 1 January 2005 with its channel allotments was briefly reused by Okto nearly four years later until 1 May 2019. SPH MediaWorks Channel U was renamed MediaCorp Channel U and became a complementary channel to MediaCorp's Chinese language channel Channel 8.[12] A number of artistes and news anchors/presenters were transferred, many of whom were former employees of MediaCorp and its predecessors the Television Corporation of Singapore (TCS) and Television Twelve/Singapore Television Twelve (TV12/STV12).[10]

Besides television, several newspaper operations were also merged and are managed by MediaCorp's newspaper division MediaCorp Press Ltd. In return, SPH became a 40% shareholder, mainly in Today, MediaCorp's main newspaper.

2017: SPH's divestment from Mediacorp

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On 25 August 2017, SPH announced its divestment of shares from Mediacorp, being 20 percent in Mediacorp TV and 40 percent in Mediacorp Press respectively to focus on its core media businesses.[13][14] Mediacorp acquired these stakes for S$18 million, resulting in both companies being full subsidiaries of Mediacorp.[15] This comes after Mediacorp announced a cessation of Today's publication as a hardcopy with a move towards digitalisation from end-September 2017, coming as more readers consume news online. The digitalisation of Today resulted in 40 roles being redundant. For five years since that date, Mediacorp will not publish any soft copy or digital format of Today similar to a hardcopy newspaper.[16][17][18] The acquisition of SPH's stakes was completed on 29 September 2017, thus returning to 2000 when media competition had not started yet.[3]

See also

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References

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  1. ^ "MediaCorp and Singapore Press Holdings complete TV and free newspaper merger". MediaCorp, SPH. 31 December 2004. Archived from the original on 22 January 2008. Retrieved 22 September 2019.
  2. ^ a b "Investing in future, embracing change - Singapore Press Holdings". AsiaOne. 5 August 2009. Archived from the original on 27 August 2009.
  3. ^ a b Woo, Jacqueline (30 September 2017). "SPH completes sale of Mediacorp stakes". The Straits Times. Retrieved 21 October 2019.
  4. ^ ""Digital Television: Managing The Transition" seminar". NAS. 5 June 2000. Retrieved 1 August 2019.
  5. ^ "SPH offered broadcast licences, MediaCorp a print licence". The Straits Times (retrieved from NLB). 6 June 2000. Retrieved 1 August 2019.
  6. ^ "SPH Launches new Broadcasting and Entertainment Subsidiary". SPH. 8 June 2000. Retrieved 1 August 2019.
  7. ^ "MediaCorp gets licence for paper". The Straits Times (retrieved from NLB). 10 June 2000. Retrieved 1 August 2019.
  8. ^ "MediaCorp And Singapore Press Holdings Merge Their TV And Free Newspaper Operations". MediaCorp, SPH. 17 September 2004. Retrieved 5 August 2019.
  9. ^ "Mediacorp, SPH Application To Merge Mass-Market Television Operations Approved". MDA (now IMDA). 6 December 2004. Retrieved 28 August 2019.
  10. ^ a b "MediaCorp and SPH complete staff rationalisation exercise". MediaCorp, SPH. 7 December 2004. Retrieved 21 September 2019.
  11. ^ "95% have accepted MediaCorp's offers of transfer". MediaCorp, SPH. 15 December 2004. Archived from the original on 18 April 2009. Retrieved 22 September 2019.
  12. ^ "Channel i to close on 1 January 2005 Channel U and Channel 8 to have complementary programming". MediaCorp, SPH. 7 December 2004. Retrieved 5 August 2019.
  13. ^ "SPH to divest stakes in Mediacorp entities". SPH. 25 August 2017. Retrieved 21 October 2019.
  14. ^ Yahya, Yasmine (25 August 2017). "SPH to divest stakes in Mediacorp TV and Press while Today newspaper will cease print edition and go fully digital". The Straits Times. Retrieved 21 October 2019.
  15. ^ "Mediacorp buys SPH's minority shareholdings of its entertainment television and newspaper businesses". Mediacorp. 25 August 2017. Retrieved 21 October 2019.
  16. ^ "TODAY moves to a fully digital future". Mediacorp. 25 August 2017. Retrieved 21 October 2019.
  17. ^ Mokhtar, Faris (25 August 2017). "TODAY goes fully digital from Oct, to end print edition after 17-year run". Today. Retrieved 21 October 2019.
  18. ^ "TODAY newspaper to cease print edition, go fully digital". Channel NewsAsia. 25 August 2017. Retrieved 21 October 2019.
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