KUALA LUMPUR (Dec 22): Catcha Digital Bhd (KL:CATCHA) said on Monday it has raised its equity interest in Headline Media Sdn Bhd — the owner of digital platforms including WeirdKaya — to 80% from 30%.
The stake increase was undertaken via the exercise of a call option under the acquisition agreement signed in October 2023, following strong earnings growth at Headline Media since Catcha Digital’s initial 30% investment, according to a filing with Bursa Malaysia. The acquisition was executed through Catcha Digital’s wholly-owned subsidiary, iMedia Asia Sdn Bhd.
“This transaction reflects our conviction-led capital allocation approach as we continue to build a permanent home for market-leading technology and media companies in Malaysia through disciplined, high-quality acquisitions,” chairman Patrick Grove said in a statement.
Headline Media owns and operates WeirdKaya, an English-language digital media platform, as well as LokLokWords and EzLokal Food. The company was co-founded by Rydah Tan, Chan Jin Wen, Dylan Tan, Esther Lee and Sarah Yeoh.
Its portfolio of brands reaches about 17 million users monthly across websites and social media platforms, with a combined follower base of roughly 1.2 million, the group said.
Catcha Digital said the RM4 million consideration for the additional 50% stake will be funded entirely via internally generated funds.
Since Catcha Digital first acquired a 30% stake in December 2023, Headline Media’s annual net profit after tax has increased by more than six times within a year, the group said.
“The group expects the profitability of the business to continue to scale meaningfully over the coming years, underpinned by continued audience growth, monetisation initiatives and deeper operational integration within iMedia’s digital media ecosystem,” Catcha Digital added.
Excluding the exercise of the Headline Media call option, Catcha Digital has announced seven acquisitions over the past 12 months. These acquisitions are said to collectively contribute about RM19.4 million in profit based on their respective 12-month post-completion periods or financial year ending Dec 31, 2025, where applicable.
Shares in Catcha Digital closed two sen or 6.45% lower at 29 sen on Monday, valuing the group at RM130.67 million. Year to date, the stock has fallen nearly 20%.