RJR Gleaner pre-emptive move

The Gleaner Company and RJR Group hinted that their planned merger of the media operations was spawned in part by the introduction of new media entities by the two telecom providers and heavy advertisers, Digicel and LIME.
The statement avoided naming entities but there are only two telecom companies in the island. Digicel started online media start-up LOOP, acquired cable company TELSTAR and regional cable channel SportsMax within the year. While LIME (C&W) regionally acquired Colombus Communications which trades as FLOW locally. Additionally the IC Insider understands from impeccable sources that talks broke down between LIME and an online media entity set for acquisition.
These moves however came within the context of what the media entities described as an already “challenging local climate”, according to an acquisition statement on a dedicated page on the Gleaner’s website.
“Further, recent moves by the large foreign owned telecom players have introduced a new dynamic where they themselves are increasingly offering media services, competing for local advertising dollars with the traditional players. Our two entities have sought to counter these developments by consolidating to shore up our financial bases in preparation for the heightened competition,” according to the statement on the dedicated merger question and answer website.
The developments in media and telecommunications so far this year could put many Jamaican media companies into the red, facing massive cut back in resources and even closure. This transaction is therefore necessary for financial sustainability of the two businesses. Jamaica needs a strong locally-owned media entity to maintain and expand our offerings globally, added the statement.