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

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