In Novermber 2014, Naspers, Schibsted Media Group, Telenor Group and Singapore Press Holdings announced an agreement to establish a joint venture for their online classifieds platforms in Brazil, Indonesia, Thailand and Bangladesh in stead of competing for the same markets.
Now, the firms have announced that the deal has been sealed as all conditions have been met.
The partners said the JV will bring substantial benefits to consumers, as they will be able to buy and sell goods on better and more comprehensive market places. The businesses will also be able to share cost, expertise and people to more effectively build awareness of the benefits of a vibrant online classifieds offering to consumers.
In a statement last November, Rolv Erik Ryssdal, CEO of Schibsted Media Group, said “Schibsted, our existing partners and Naspers have all been at the forefront in developing high quality, online market places for consumers wanting to buy and sell in a number of emerging markets. By joining forces, we will be able to further develop these market places even more efficiently”.
According to the deal, Naspers andSnT Classifieds will own 50/50 in Brazil. Naspers and 701 Search will own 64% and 36% respectively in Indonesia while in Thailand 701 Search and Naspers will own 55.9% and 44.1% respectively. In Bangladesh SnT Classifieds will own 50.3% while Naspers will own 49.7%.
SnT Classifieds is an equal shareholding joint venture between Schibsted and Telenor and 701 Search is an equal partnership joint venture amongst Schibsted, Telenor and SPH. 701 Classifieds will transfer its online classifieds business in the Philippines to Naspers, who will manage the operation. This would allow 701 Search to focus its efforts in Thailand. In certain other markets in Latin America and Asia Schibsted, SnT Classifieds and 701 Search, respectively, acquire Naspers’ operations. At the same time, Naspers acquires the operations of Schibsted, SnT Classifieds and 701 Search in certain other markets.