KUALA LUMPUR: Media Prima Bhd has acquired the remaining stake in its home shopping segment CJ Wow Shop, making it a wholly-owned subsidiary of the group.
Media Prima said the acquisition was part of its transformation plan to tap into the strong prospects of the home shopping and e-commerce industry.
The group, via Sistem Televisyen Malaysia Bhd (STMB), bought a 49 per cent stake in MP CJ ENM Sdn Bhd from South Korean entertainment company CJ ENM Co Ltd.
"The acquisition supports Media Prima's plan to grow the commerce segment further. The sale and purchase negotiated between the group and CJ ENM will ensure a smooth business transition of CJ Wow Shop's operations," it said.
Media Prima group managing director Datuk Iskandar Mizal Mahmood said having built the brand and with key infrastructures in place, the group had achieved the primary objectives of the joint venture.
"We are confident that critical knowledge and know-how of the business have been fully achieved. CJ Wow Shop has been and will continue to be one of the key growth areas for the group.
"Looking at its performance in previous years and in the last few months, we are fully confident of the potential of this segment," he said.
MP CJ ENM chief executive officer Yang Hyun Kim said CJ Wow Shop has become a successful household commerce brand since it was established four years ago and today, it has strong presence on both broadcast and digital platforms.
"We will continue to build on the success of CJ Wow Shop using the expertise and infrastructure gained, and through its established network of merchandisers.
"We will also continue to utilise local talents that we have trained for both its broadcast and logistic operations," he said.
Media Prima said its large broadcast reach - over 35 per cent total audience share - had served as one of the key drivers to the success of its home shopping segment.
CJ Wow Shop also leverages the group's overall mass reach and digital capabilities to target audiences with data-driven content and to strategically plan airtime and products.
Iskandar said Media Prima Television Networks would continue its collaboration with CJ ENM primarily in the entertainment sector focusing on content production.
CJ Wow Shop has been instrumental in generating non-advertising revenue for Media Prima from both television and digital platforms, contributing over RM230 million to the group's revenue in 2019.
CJ Wow Shop posted a first half (1H) 2020 net profit of RM6.3 million, sharply reversing a net loss of RM7.6 million a year ago.
This was achieved on the back of a 34 per cent revenue increase to RM152.8 million from RM114.3 million in the corresponding period.
This includes higher sales from its e-commerce and mobile commerce platforms which contributed over 52 per cent of its total sales.