UMH Group, SCM and KP Media Unite Internet Portals
UMH group, KP Media and Ukraina Media Group (a part of SCM Group) have agreed to unite portals i.ua, bigmir.net and tochka.net into United Online Ventures company. The deal will take effect on approval by the national authorities. The joint company will boost efficiency and strengthen position of each portal in Ukrainian Internet market.
The new company will cover more than one-third of the country's web users and thus be the biggest player in Ukraine's online advertising market with a 25% share.
The new company is 75.1% owned by UMH group jointly with KP Media and 24.9% owned by Ukraina Media Group. SCM's media business plans to increase its ownership to 49% in future.
Each portal will both preserve its unique nature and expand the audience.
Most employees of the new company will come from tochka.net, i.ua and bigmir.net. Reorganisation will not bring any material HR changes, but will release resources for launch of new services and further development of high-quality exclusive content.
All key managers will move to United Online Ventures: Vitaliy Gorduz responsible for Internet business in UMH group will become the CEO and Olga Marunich, former CEO of Digital Ventures (tochka.net), will be the CFO. The joint company will also include Digi Media sales house led by Grzegorz Sewastianowicz and Yulia Tribushnaya. Digi Media will sell advertising on tochka.net, i.ua, bigmir.net and other web resources run by the parties to the deal and cover about one half of Ukrainian Internet users.
Boris Lozhkin, UMH group President: "The consolidation will enable more efficient use of resources of the involved projects to develop the joint company. As a Ukrainian company that provides access to a half of Ukrainian audience, we offer advertisers the unrivalled solutions with coverage of a global player and response speed of a local company."
Yekaterina Lapshina, SCM Director of Media Business Development: "This integration is a leap towards consolidation of Ukraine's fragmented Internet market. We have every reason to believe that the joint company will take the lead in the market very quickly due to unique expertise of the involved parties and professionalism of the teams. Its development will ensure return on our investments."
Fyodor Ogarkov, Ukraina Media Group CEO: "The joint company plans to use the opportunities offered by the web to develop unmatched effective advertising products for SMEs. The capacity of these products has yet to be assessed. We also see the synergy between businesses of the media group and United Online Ventures that in future may result in other interesting projects.
Petr Poroshenko, KP Media shareholder: "The web segment of Ukrainian media business is the most promising even in a short term and, in my view, considerably understated. Furthermore, today Ukrainian Internet space develops fast, expands the audience and delivers a rapid growth as compared to other segments of the advertising market. These factors, of course, make it more appealing for both Ukrainian and foreign investors. The synergy from consolidation of Ukrainian web portals creates a very interesting investment destination in domestic Internet market."
Vitaliy Gorduz, UMH group's Internet business executive: "Integration of the three leading Ukrainian portals makes a strong alternative to foreign expansion in our market. Moreover, after consolidation of our efforts we will be able to meet market challenges and satisfy needs of our clients in a faster and more efficient way."
UMH group is a rapidly developing multimedia group in Eastern Europe that manages a portfolio of more than 50 brands. In Ukraine, the company is among the leaders in Internet, radio and press markets. It develops fast and is in top 10 publishing players in Russia. Since May 2008 the company has been listed on the Frankfurt Stock Exchange. It employs over 4,400 people in 43 offices throughout Russia and Ukraine.
Ukraina Media Group is a media holding that evolved from Ukraina TV channel in 2010. It includes Ukraina national general-interest TV channel, Futbol and Futbol+ sports channels, Donbass regional channel, Mediapartnership sales house, Digital Ventures Internet holding and Tele Pro production company.
The SCM Group owns 99.999% of the media group.
KP Media is the leading Ukrainian media company that publishes Korrespondent, Kyiv Business Directory, Interyer Magazin and Idei Vashego Doma magazines. KP Media also owns the following web resources: Bigmir.net, Korrespondent.net, Ricardo.com.ua, Novynar.com.ua, Politorg.net, Ivona.com.ua.
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Digi Media is Ukraine's biggest sales house that consolidates sales at 16 leading web platforms. This one-stop shop company has exclusive rights to advertising sales on the websites that have in total over 400m page views a month. The sales house covers 45% of Ukrainian web users.
i.ua is a popular Ukrainian online services portal and now ranks 2nd by daily visits among Ukrainian portals.
bigmir)net is one of the most visited content portals in Ukraine and has 28 key sections. Also, the resource operates Ukraine's best known and reputable rating system (over 73,000 rated websites).
tochka.net is one of the most popular lifestyle resources where users can get information they need during a day in main sections of the portal: Lady, Finance, Auto, Sport, Playbill and Entertainment. Also, tochka.net offers access to useful services: maps, antivirus, chat, TV programme, weather forecast, etc.
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Online resources where Digi Media sells advertising:
• Portals: I.ua, Bigmir.net, Tochka.net, Vgorode.ua
• News websites: Korrespondent.net, Segodnya.ua, KP.ua, Focus.ua, AiF.ua, Novynar.com.ua
• Sports: Football.ua, iSport.ua
• Finance: Dengi.ua, Ricardo.com.ua
• Lifestyle: Gloss.ua, TV.ua