2013-09-30 00:03:03 -
(Fornebu, 30 September 2013) Telenor, Schibsted Media Group and Singapore Press
Holdings (SPH) are teaming up to create two joint ventures in online
classifieds. The companies will provide high-quality online classified services
to people in Asia and South America.
Telenor Group and Schibsted Media Group have established SnT Classifieds, a
company which will pursue online classified opportunities in selected key
markets in South America and Asia. Telenor will also join as equal partner in
701 Search (701), the current joint venture between Schibsted Media Group and
SPH which operates and develops online classifieds in Southeast Asia.
While Schibsted brings extensive knowledge of and experience from the online
classifieds business, Telenor contributes with significant emerging market
experience and deep insight into mobile internet technology and usage. Through
its strong media presence in Singapore
and across Southeast Asia, SPH will
continue to bring substantial value to the partnership through extensive local
insight and a strong regional network.
"We believe we will succeed in bringing our popular products and proven
business-models to rapidly developing economies in South America and Asia. These
joint ventures formed by three knowledge- driven and industrially oriented
companies give us even more financial and operational strength to pursue
attractive number 1-positions. We can do more, and we can move faster. This will
improve our chance to succeed," said Schibsted CEO Rolv Erik Ryssdal.
Over the next six to seven years, close to three billion people are expected to
access the Internet using their mobile phone as the primary or only interface.
As more services go digital and mobile transactions gain ground, the mobile
device will become ever more important for distribution. Participation in the
development of the most successful Internet sites nationally, which online
classified sites typically are, will help to secure presence on the devices and
increased exposure to the mobile Internet growth.
"Bringing Internet to the masses is a key objective for Telenor. Online
classifieds on mobile is growing fast. Being one of the largest mobile operators
in the world with a strong footprint in emerging markets, it makes perfect sense
for Telenor to team up with two world class companies like Schibsted and SPH to
create a leading online classifieds player. The combined Asian scope of SnT
Classifieds and 701 also overlaps well with Telenor's Asian presence," said
Rolv-Erik Spilling, EVP and Head of Telenor Digital.
Mr Alan Chan, Chief Executive Officer of SPH, said: "701 Search has turned in a
good performance since it started, achieving market dominance in some areas and
growing rapidly in others. With the participation of another strategic investor,
and the different strengths and extensive knowledge of SPH, Schibsted and
Telenor, we can work towards penetrating the online classifieds market in
Southeast Asia and beyond."
"Schibsted, SPH and Telenor are a perfect match. Schibsted and SPH are leading
providers of one of the most popular Internet services in online classifieds,
and reach around 100 million people worldwide. Telenor is one of the world's
leading mobile companies already bringing communication and Internet services to
150 million customers in Europe and Asia," state Ryssdal, Chan and Spilling.
The two joint ventures will have the following structure:
SnT C is a new joint venture established by Telenor and Schibsted, in which
Telenor and Schibsted will own 50% each. Schibsted contributes their existing
South American assets Yapo (Chile) and Bomnegocio (Brazil). Telenor contributes
with its Bangladeshi asset Cellbazaar.
SnT C will be governed through a Board of Directors with equal representation
from Schibsted and Telenor. Terje Seljeseth, CEO of Schibsted Classified Media
will be the Chairman of the Board of Directors of the new company. The CEO of
the new company will be Andries Oudshoorn, currently the CEO of Schibsted's
online classified site Bomnegocio.com in Brazil.
701 is an existing joint venture between Schibsted and SPH with online
classifieds operations in South-East Asia. 701 Search today operates the online
classified companies Mudah.my (Malaysia), Berniaga.com (Indonesia), Ayosdito.ph
(The Philippines) and Chotot.vn (Vietnam). 701 Search Pte was established in
2006 by Schibsted and SPH as equal partners. According to the agreement,
Telenor, Schibsted and SPH will hereafter own 33.3% each in 701.
Telenor pays around EUR 145 million in cash for its 50% share in SnT Classifieds
and 33.3% stake in 701. The parties have committed pro rata funding of the joint
ventures until estimated cash flow breakeven.
An online classified site is a digital marketplace that can be divided into
several segments such as general merchandise, automobiles, property, jobs,
personals, travel and services. In the majority of countries where online
classifieds sites exist they are among the most visited web-sites. Examples
include Schibsted's leading sites Finn (Norway), Blocket (Sweden) and Leboncoin
The transaction is subject to relevant merger control approvals and is expected
to be finalized during Q4.
Schibsted: Anders Rikter, Head of Communication Schibsted Media Group, (+47)
920 84 996, email@example.com
Telenor: Atle Lessum, Head of Communication Telenor Digital, (+47) 415 05 645,
SPH: Chin Soo Fang, Head Corporate Communications & CSR Singapore Press Holdings
(+ 65) 6319 1216, firstname.lastname@example.org
Telenor Group is an international provider of tele, data and media communication
services. Telenor Group has mobile operations in 12 markets in the Nordic
region, Central and Eastern Europe and in Asia, as well as a voting stake of
42.95 per cent (economic stake 33 per cent) in VimpelCom Ltd., operating in 17
markets. Headquartered in Norway, Telenor Group is one of the world's major
mobile operators with more than 150 million mobile subscriptions in its
consolidated operations per Q2 2013, revenues in 2012 of NOK 102 billion, and a
workforce of nearly 34,000. For more information about Telenor Group, please
Follow us on twitter: twitter.com/TelenorGroup
Schibsted Media Group
SHAPING THE MEDIA OF TOMORROW. TODAY.
Schibsted is an international media group with approximately 7,800 employees and
operations in 29 countries.
Schibsted's strategy comprises two main objectives: further development of our
media houses and establishment of popular online classifieds services. Several
of our media houses are among Europe's leading online newspapers and pioneers in
the fields of web TV, mobile and paid online services. The industry know-how
which our media houses possess about the interaction between established and new
media forms much of the basis for our ambitions for future growth. In recent
years we have been systematically expanding our online classifieds business,
both through acquisitions and organic growth. The online classifieds segment is
a long-standing and important part of our business model. For more information
about Schibsted Media Group, please visit Schibsted.com
Singapore Press Holdings
Main board-listed Singapore Press Holdings Ltd (SPH) is Southeast Asia's leading
media organization, engaging minds and enriching lives across multiple languages
and platforms. SPH has 19 titles licensed under the Newspaper Printing and
Presses Act, of which nine are daily newspapers across four languages, and over
100 magazine titles in Singapore and the region. On an average day, - 3.05
million individuals or 76 percent of people above 15 years old, read one of
SPH's news publications. SPH's internet editions of its major newspapers enjoy
over 300 million page views with 20 million unique visitors each month. Other
new media initiatives include AsiaOne, omy.sg, ST701, Stomp and The Straits
Times RazorTV. SPH has also ventured into book publishing, broadcasting, out-of-
home advertising and properties. For more information, please visit
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Telenor via Thomson Reuters ONE