SCTV Acquisition Indosiar, What word MNC boss?

Competition television media industry that is too tight will lead to high costs.

MNC Management Group to assess the acquisition of PT Indosiar Karya Media Tbk PT Elang Mahkota Technology Tbk, the holding of PT Surya Citra Media Tbk is an effort to reduce costs. Surya Citra Media is the manager of television station, SCTV.

Chief Executive Officer (CEO) MNC Group, Hary Tanoesoedibjo, said the television media industry competition that is too tight will lead to higher costs for television station managers. "Imagine, high competition will trigger a rate card (advertising rates) are high among television stations, so the cost will be high as well," said Hary in Jakarta, Tuesday, March 29, 2011.

He added that acquisitions made by the master plan for the management of Indosiar SCTV is still semi-acquisition because of the amount of new 27.24 percent. "I think in some time, the acquisition will continue so that consolidation will continue to run full as RCTI and Global TV," he said.

He said the acquisition was to make the television industry become more segmented. "If fragmented it would be difficult to compete," he said. Consolidation of the television industry, he continued, the competition better. "More efficient, so that mutually sustainable," he said.

As is known, as of March 1, 2011, Crown Eagle has signed a conditional sale and purchase agreement with PT Prima Visualindo, Indosiar as a shareholder, in connection with the purchase of 551,708,684 shares, equivalent to 27.24 percent of the total shares Indosiar.

Purchase price for the shares it is 900 per unit with a total transaction value of Rp496, 537 billion. The purpose of the acquisition of shares is to become the controlling shareholder in Indosiar.