Catcha-Says merger to change digital advertising game: Page 3 of 3
By Gabey Goh May 22, 2013
Start of consolidation wave?
Youth Asia, parent company of Says, is an investee of Teak Capital, a technology-focused venture capital management corporation.
Teak Capital managing director Chok Kwee Bee tells DNA that the merger was an opportunity to take Says “to the next level.”
“Teak's focus has always been to groom leaders with high potential to realise that. Khailee [Ng] and his team at Says have created a formidable high-growth business in a competitive space.
"Teak is proud of what they've achieved so far, and will continue to offer guidance when called upon, while focusing on grooming and investing in the next generation of successful startups,” she said.
Chok added that the high-growth opportunity is not in traditional media, as consumer habits are predominantly and increasingly going digital. The consumer shift has happened so quickly that the market needs more holistic and effective solutions in the digital realm, she argued.
“That being said, strong media brands like Catcha Media [and its] 15 print magazine titles have a loyal following, and the idea of using that as a springboard to further dominate digitally is also part of why the deal is exciting,” she said.
Chok said that she believes traditional media will always have its place. “That being said, digital spending in every country around the world is going only one way -- up. This is why we invest in digital opportunities,” she added.
When asked whether this proposed merger between two rising Malaysian companies could signal the start of a larger wave of consolidation, Chok said it was possible.
“I foresee more mergers and consolidation taking place amongst startups and SMEs (small and medium enterprises) in the next two years. This will be positive for the market, as we need to see bigger companies from Malaysia which can go regional,” she said.
“I've been working with many founders and I have seen great business grow and succeed. In the end this is not about 'digital' or 'traditional' -- it's about two driven entrepreneurs joining forces to build a profitable, sustainable, fast-growing business, and that is what investors want more of,” she added.