MEDIA-I: Web shop shifts focus to joint-venture firms

HONG KONG: Asiacontent.com has closed its internet solutions operations in Singapore, Hong Kong and China, and will spin off its business in Korea and Taiwan, while layoffs have also hit its joint-ventures, DoubleClick and MTV Asia Online. The move brings the company's total head count down to 104 from 278 in the second quarter of this year and almost 600 at its peak last year. Asiacontent.com will now focus its resources on its joint-ventures, DoubleClick Media Asia and MTV Asia Online, and expects to reduce expenses by more than US$500,000 each month. Chris Justice, chief executive officer of Asiacontent.com, said the move was part of a cost-cutting drive. Citing a tough business environment, he said Asiacontent.com was "further reducing costs in these business units (DoubleClick and MTV Asia Online) to more quickly bring the company to profitability". Steve Moss, chief executive officer, DoubleClick Media Asia, confirmed there had been layoffs, but declined to provide an exact figure. "We've always taken a look at the end and at the start of each quarter to increase efficiencies at the company. There have been some layoffs recently and cutbacks in other areas as well, but I can't provide more details. It is part of our continuing ongoing strategy," said Moss. "We are seeing layoffs across the board in every sector. And the redundancies here have not been overly aggressive as what other companies have had to go through." He also stressed that the strategic direction of DoubleClick Media would remain unchanged in Asia and that the company's clients would not be affected by the recent developments. "The changes will allow Asiacontent.com to focus its time on DoubleClick operations as it steps out of web solutions. Our business is not changing in terms of strategic consequences. It is just giving Asiacontent.com more time to invest in us. We have always operated as separate companies," said Moss. Asiacontent.com's Hong Kong headquarters will complete existing projects, while its client work in Singapore will be completed or assigned to a company led by its Singapore-based management. In Taiwan, the company transferred contracts and some assets and staff to a new company led by Michael Wu, general manager for Asiacontent.com's Taiwan operation. An agreement has also been reached to spin off its Korea unit, which will be led by Bryan Lee, country manager for Asiacontent.com. Asiacontent.com will retain a 20 per cent stake in its Korea and Taiwan spin-offs, but this will not extend to its involvement in management or operations. It will also waive all financial obligations.

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