Media company Yeah1 (code: YEG) has just approved the acquisition of MediaOne, despite its reported VND223 billion ($9.7 million) losses for the first nine months of this year, a stark contrast to its VND158 billion ($6.87 million) profit in the same period last year.
|Yeah1 has decided to go ahead with the acquisition, disregarding MediaOne's recent losses |
Yeah1 Group Corporation’s Board of Management has just approved to buy a 50 per cent stake in MediaOne for VND138.6 billion ($6 million), including a 25 per cent stake offered by MediaOne via a private placement and the remaining by MediaOne director Bui Thien Ha.
This is said to be part of the corporation's media-commerce strategy, and the timeline of payment will depend on MediaOne’s business results, according to bizlive.vn. The deal aims to develop a service of accumulating Mpoint e-wallet reward points for loyal customers, raising clients' revenues and decreasing costs of customers care. MediaOne has 128,000 users and 13,000 clients.
According to its financial statement, compared to the beginning of the year, Yeah1's total assets reduced by VND250 billion ($10.87 million) to VND1.712 trillion ($74.4 million); net working capital decreased to VND884 billion ($38.43 million) from VND1.296 trillion ($56.35 million).
Amidst the swarming difficulties after terminating its partnership with YouTube, Yeah1 withdrew more than VND487 billion ($21.17 million) of bank deposits in the first nine months of the year, and the outstanding loans in this period rose to VND708 billion ($30.78 million), while it was VND356 billion ($15.48 million).
Earlier, in August 2018, Yeah1 earned VND1.173 trillion ($51 million) from a private placement. VND300 billion ($13 million) of this has been poured into the digital sector, VND141 billion ($6.13 million) into shares of funds, and VND192 billion ($8.35 million) was allocated as additional capital.
VND100 billion ($4.5 million) of the remaining amount has been poured into the bonds of Dai An Plastic (DAPC) and VND40 billion ($1.74 million) into the bonds of Ho Chi Minh City Infrastructure Investment JSC (CII) and was deposited at banks.
As a result, Yeah1 reported losses more than VND100 billion ($4.35 million) in the second consecutive quarter, raising its net loss in the first nine months to VND214 billion ($9.3 million) and accumulated losses to VND133.5 billion ($5.8 million).