The Vincent Tan -Malaysiakini deal: Who says money cannot buy everything...

According to THE EDGE:
Popular Internet news website Malaysiakini.com is in talks on a tie-up with payment systems operator MOL AccessPortal Bhd, a company under the stable of Tan Sri Dat Seri (x9) Vincent Tan Chee Yioun.

Sources said the discussions did not discount the possibility of an exchange of equity and both parties were currently negotiating a deal that would be of mutual benefit.
(http://www.theedgemalaysia.com/business-news/152223-mol-malaysiakini-in-talks.html)

Meanwhile, Malaysiakini continues to solicit donations (http://www.manage4me.com/donation/mkini/).It is unclear how donors will benefit from a share swap or any other deal involving the shareholders.

Malaysiakini.com is owned and operated by Mkini Dotcom Sdn Bhd, a private limited company incorporated in July 1999.

Mkini is a digital media company, focusing on Internet and other interactive media technology and information services.


The Directors of the company are the founders of Malaysiakini.com Steven Gan and Premesh Chandran.

Mkini's paid up capital is RM 4,514,939. The directors each hold 30.1% equity in the company. Venture fund Media Development Loan Fund holds 29.1%, whereas the balance 10.6% equity is held by individuals, staff, former staff or retained in the Employee Share Incentive Scheme.
http://www.malaysiakini.com/pages/general/corporate.htm

It is important to note, as is explained below, that the founder directors, Steven Gan and Premesh Cahndran were journalist at THE SUN, which was then, as it is now, owned by that doyen of free speech, Tan Sri Dato Seri(x9) Vincent Tan Chee Yioun.
Given their 30.1% stakes, the founding directors would have contributed RM 1.3544817 MILLION , or RM 677,240.85 each-an outstanding effort given what journalist were paid then at THE SUN.

Industry sources said although Malaysiakini has done well to establish itself, after 10 years it barely makes money (http://www.theedgemalaysia.com/business-news/152223-mol-malaysiakini-in-talks.html).

In any case, putting, money, that tainted thing, aside, the following raises questions as to what this deal entails:

Steven Gan, as quoted by PBS, had this to say of the Malaysian Establishment, and THE SUN:
The mainstream media is either completely or directly owned by political parties in Malaysia," Gan told the CPJ in October, "so in that sense, there is very little room for editors to … [criticize] the governing political parties."
For years, as a print journalist, Gan butted against Malaysia's tough press restrictions with investigative reports detailing alleged government abuses of power.
As a reporter for Malaysian daily newspaper The Sun, Gan wrote a series of reports in 1995 on the deaths of 59 inmates in a migrant worker detention camp. When Sun editors refused to print his stories for fear of arousing government anger, Gan turned his articles over to a human rights group for publication.
In 1996, Gan was one of several journalists arrested while covering the Second Asia Pacific Conference on East Timor -- a meeting in Malaysia of activists from Asian nations to discuss the growing unrest in the Indonesian territory, which gained its independence in 1999.
Gan attempted to chronicle his five days in captivity for The Sun, but its editors refused to publish his reports. Gan resigned in protest.


In November 1999, he started Malaysiakini.com with $100,000 and a staff of four journalists. Now, a year later, Gan's staff has increased to 14 and his site claims nearly 100,000 visitors a day.
Throughout its first year, Malaysiakini.com reported on deception in local newspapers as well as misconduct in the Malaysian judicial system. It also provided in-depth coverage of the November 1999 elections that extended Mahathir's nearly 20-year rule as prime minister.
The Web site's controversial reports have been noted by the BBC, The Washington Post and the International Herald Tribune.
Based just outside Kuala Lumpur, Malaysiakini.com's staff resides in Malaysia, but its computer server is based in the U.S. -- placing it far away from future government restriction. The site is funded by grants from the Southeast Asia Press Alliance and advertising revenue.
Although his publication has, so far, survived government intervention, Gan said he is still in a risky business.
"I think the government can shut us down anytime," he said. "They can come into our office and take all our computers. We are prepared for that eventuality."

http://www.pbs.org/newshour/media/ipf/gan.html

As one former Malaysian journalist asked, "what of all that talk about the corrupt Establishment and its crooked judges, politicians and cronies?"

Comments

  1. I hope that Malaysiakini will not fall into the Vincent Tan trap. Please think wisely.

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