Big fish and small fish

We speak about convergence of mediums, and also convergence of ownership. The latter phenomena is taking place right here in Malaysia, and I sit back think about the impact to the other media players in the country.

Media Prima, a company owned by one of the major political parties forming Malaysia's ruling coalition, is on a buying spree. It recently concluded a major acquisition of an advertising company, Big Tree and has plans to also purchase another two advertising firms. Media Prima owns four television stations and english daily New Straits Times and several Malay dailies Berita Harian and Harian Metro.
Two days ago it announced plans to acquire Malay daily Utusan Melayu, currently holding one of the top readership and circulations in the country. This massive merger is being strongly opposed by shareholders of Utusan Melayu but gauging from the business logic and justifications, it would most probably be sealed by early 2007.

Critics to this merger raise concerns about a media monopoly and threat to press freedom. Malaysia's situation as we all know already faces the challenges of strict press regulations and licensing controls. The press has been allowed some leeway in the past few years, but what will happen now with fewer players in the market?