23 Mar – mm2 Asia Ltd (mm2 Asia), producer of movies, television and online content, is set to be the key to info-communications company StarHub's plan in further expanding the latter's pay TV offerings.
"Taking a stake in mm2 is a strategic move. It unlocks opportunities to expand our pay TV offerings through original content creation that will set us apart in the cluttered content space," said StarHub CEO Mr Tan Tong Hai in a press statement.
The agreement was signed yesterday, 22 March, and the acquisition of a stake in mm2 Asia is expected to be completed in May 2016.
StarHub will be acquiring 9.05% of mm2 Asia's stake for SGD18,040,000.
"We're honoured to have StarHub as one of our shareholders. For many years, mm2 has been working closely with StarHub across many areas. This equity participation by StarHub in mm2 cements our working relationship and is a significant endorsement for our company," said mm2 Asia CEO Mr Melvin Ang.
Early last year, mm2 Asia introduced the Red Carpet Club exclusively for its shareholders and investors. By being members of the club, the shareholders and investors will receive exclusive invitations to movie galas and previews as well as free tickets for selected movies produced or distributed by mm2 Entertainment.
mm2 Asia has also been actively expanding its exhibition business, which is good news for StarHub as well since the two often work together, having been partners since 2012 through StarHub's investments in mm2 Asia-co-produced "Ah Boys to Men" and "Lion Men" movie series, the successful franchises by director Jack Neo.
Part of mm2 Asia's plan was forming its very own cinema team last year following its acquirement of five cinemas on Malaysia.
The first two cinemas were owned by Cathay Cineplexes Sdn Bhd (Cathay Cineplex Damansara and Cathay Cineplex City Square) and another three by Mega Cinemas Management Sdn Bhd (Mega Cineplex Prai, Mega Cineplex Langkawi and Mega Cineplex Bertam).
However, it is still not known whether the company will be rebranding the acquired cinemas to perceptibly define them all together under one brand. It is also not known, but a possible move, whether the company is looking to acquire more screens in Malaysia or Singapore.
In the meantime, mm2 Asia is producing "Hear Me Sing", the online Chinese singing competition presented by StarHub, which will be launched this April.
mm2 Asia could not be reached for further comment at the time of writing.