OLX’s CEO for Southeast Asia Brad Porteus gives a detailed look at the road ahead, assuming the mergers go as planned by around January 2015
Image credit: OLX
Following the announcement last week that Naspers, Schibsted Media Group, Telenor Group and Singapore Press Holdings have decided to establish four joint ventures for the development of their online classified businesses instead of competing, Naspers-owned OLX CEO for Southeast Asia, Brad Porteus, had more to share with e27 on the latest developments.
“It’s difficult to comment on the progress of the partnership, as we are essentially on hold until the European Commission reviews and approves the deal, which we anticipate will be sometime in January. Until such time, it is business as usual while we await the go ahead to proceed operationally,” Porteus said.
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But nonetheless, Porteus was forthcoming with as much information as he was able to share. For one thing, he said OLX is ‘really excited’ about the partnership announcements in markets such as Indonesia, Thailand, the Philippines and Bangladesh, describing the move as a ‘win-win’ exchange.
Naspers is already operating online classifieds businesses as OLX in more than 30 markets globally, Porteus explained. Schibsted, meanwhile, has global expertise in online classifieds with hugely successful businesses, particularly in Scandanavia and Western European countries such as Finland, Sweden, France and others.
“Telenor brings expertise in mobile, with local operations in Thailand and Bangladesh, which will contribute to our success there. Singapore Press Holdings brings expertise operating in Asia in both media and consumer marketing. Best of all, we come together with shared passion and purpose to build vibrant and successful digital classifieds marketplaces in every local market where we operate,” he said.
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Porteus offered a more detailed breakdown of OLX’s intentions in each region going forward:
Indonesia:
We intend to form a joint venture which will operate under the OLX.co.id brand name on the existing OLX technology platform. OLX shareholders will own 64 per cent of the joint venture, while Berniaga shareholders will own 36 per cent. We will combine into a unified team led by the existing OLX management team, while adding staff from the Berniaga team. The Berniaga site, apps, platform and users will be redirected to OLX.co.id after the deal closes.
Thailand:
OLX.co.th and kaidee.com are joining forces into a joint venture with 56 per cent holdings by kaidee and 44 per cent ownership by current OLX shareholders Naspers. The operation will be led by the existing OLX Thailand team and run off of the current OLX Thailand technology platform. There is no decision yet made on the brand we will operate under in Thailand – a decision that will be jointly made by the shareholders and local management for our mutual long-term success in Thailand.
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Bangladesh:
OLX.com.bd and Ekhanei.com will merge and operate under the Ekhanei.com name and on the existing Ekhanei.com technology platform. The joint venture will be majority owned (51 per cent) by SNT (Schibsted and Telenor), while Naspers will own 49 per cent. The existing Ekhanei.com team will manage the operations, while looking to add staff from the existing OLX Bangladesh team where possible.
The Philippines:
The intentions are that Ayosdito.ph will close operations upon closing of the deal, and the Ayosdito site, apps and users will be redirected to OLX.ph.
“Note that there will be no action in terms of operations until the transaction closes – hoping for January 2015. Until this time, it is business as usual for all parties, as there are no guarantees that the deal will close,” Porteus concluded.
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