Two of my most favorite (read: independent) newspapers are in trouble.
Here in Thailand the whole country has been rocked with news of the hostile takeover attempt of two of the best independent newspapers by one of the country’s largest media groups, announced just two days ago.
This is important and alarming news, not only because the potential acquirer is closely connected to Prime Minister Thaksin Shinawatra, but because these two papers are among the last remaining independent newspapers that are very influential. This also marks only the third time that a hostile takeover is attempted in Thailand.
If this attempt is successful (it will take about 3 months for the tender offer process to finish), the end of freedom of the press in Thailand will loom much closer than ever before.
I’d like to post here the editorial from yesterday’s The Nation (a relatively independent newspaper that is one of the two English-language papers in Thailand), with my own comments/thoughts added in parentheses in blue.
I can only hope that this will spur individuals and freelance journalists to set up blogs so they can communicate directly to the people. This government has got to go.
The Nation
Editorial Opinion
Sept 14, 2005
We may be saying goodbye to Thailand’s media industry as we have known it to be for the past decade or so. As you read this article, the status quo is being turned upside down due to GMM Grammy Group‘s apparently hostile takeover attempt for Post Publishing Plc and Matichon Plc.
Two of my most favorite (read: independent) newspapers are in trouble.
Here in Thailand the whole country has been rocked with news of the hostile takeover attempt of two of the best independent newspapers by one of the country’s largest media groups, announced just two days ago.
This is important and alarming news, not only because the potential acquirer is closely connected to Prime Minister Thaksin Shinawatra, but because these two papers are among the last remaining independent newspapers that are very influential. This also marks only the third time that a hostile takeover is attempted in Thailand.
If this attempt is successful (it will take about 3 months for the tender offer process to finish), the end of freedom of the press in Thailand will loom much closer than ever before.
I’d like to post here the editorial from yesterday’s The Nation (a relatively independent newspaper that is one of the two English-language papers in Thailand), with my own comments/thoughts added in parentheses in blue.
I can only hope that this will spur individuals and freelance journalists to set up blogs so they can communicate directly to the people. This government has got to go.
The Nation
Editorial Opinion
Sept 14, 2005
We may be saying goodbye to Thailand’s media industry as we have known it to be for the past decade or so. As you read this article, the status quo is being turned upside down due to GMM Grammy Group‘s apparently hostile takeover attempt for Post Publishing Plc and Matichon Plc.
Things will never be the same. And especially not for Bangkok Post and Matichon journalists, who woke up yesterday to find that their imminent new boss is an entertainment mogul with very strong political connections who last year was reported to be interested in buying Liverpool Football Club. (conveniently, Grammy’s interest in Liverpool was announced right after the government dropped its own intention to own Liverpool after intense public opposition. If anyone doubted that Grammy helps act as the ‘front’ for Thaksin for conflict-of-interest deals, this deal should have removed all doubt).
Those delighted by the news are excited by the prospects of fresh investment and an opportunity to be part of what aspires to be the country’s most comprehensive and powerful media giant.
The twin takeover bids can pave the way for a merger of a quality Thai-language newspaper and a major English-language daily. Prospective advertising money looks very promising, both from the private sector and a government known to have no qualms in shifting public relations funds to friendly organizations. (it is a well-known fact that government’s threat to pull ads from newspapers is one of the key methods they use to pressure the press. Advertising by government agencies – not to mention conglomerates owned by politicians – is a major source of revenues for the media industry).
Pessimists simply don’t believe a nice guy like Grammy boss Paiboon Damrongchaitham has turned into a highly ambitious and arrogant takeover monster overnight. Is he doing this to expand and complete his own business?
Why does he want to spend nearly Bt3 billion [for] two potentially rebellious newsrooms?
Is he doing it for someone else? Does national politics play a big part here?
Paiboon, who claims he only wants Grammy to be the biggest content provider, will have to do a lot to prove that there are no political fingerprints in the stunning takeover schemes. Bangkok Post reporters can’t help but link the Grammy onslaught with recent political pressure on their management regarding the controversial story over alleged runway cracks at Suvarnabhumi Airport (these cracks actually did occur according to my engineering friends, and they were not major problems, but the Minister of Transportation – following the government’s “deny all faults no matter how small” policy – insisted these cracks were ‘technically intended.’ This is a very stupid excuse because, well, have you heard of any airport that intentionally builds curved cracks on their runway??)
But their Matichon counterparts, who didn’t see it coming, must have been more shocked.
The tycoon has promised non-interference in editorial policies. It’s up to the journalists of the two newspapers whether to give him the benefit of the doubt. After all, there must be rich people with noble objectives, who are keen to spend Bt3 billion on two newspapers and tell the reporters: go ahead with your non-partisan job and I will just watch you work.
Paiboon’s move doesn’t make bad business sense but it doesn’t make good political publicity for the Thaksin government, either. Even if his motives are truly innocent, his timing is still conspicuous. When a close friend of the prime minister tries to buy two leading newspapers when the government is losing one media ally after another, speculation runs wild. (Actually, I don’t think this acquisition makes much business sense: given Grammy’s focus on the ‘mass market’ and grassroots consumers (two of its latest diversification attempts were instant noodles and door-to-door cosmetics chains), it would have much better synergies from ‘mass market’ newspapers like Thairath or Daily News. But these two papers are already ‘pro government’ or at least not as vocal in their opposition as Bangkok Post and Matichon, which further strengthens the likelihood that this takeover attempt was motivated by politics, not by business.)
The tycoon, who has always sent his superstars to help promote government events, may just want to launch into new ventures as a precaution against his entertainment business reaching saturation point.
If the watching public is to believe that this is his main motive, the two newspapers that he buys will have to display unwavering independence and freedom to stand for what they have been standing for.
Comments on Web boards yesterday confirm that the two dailies will have to work hard to fight off daunting public skepticism. A lot of people are overlooking the business aspects of the takeovers.
What many see now is Thaksin Shinawatra and Paiboon standing side by side, with one commanding iTV (iTV was set up with a mandate to be an independent news channel with the focus on educational and news programs. After the takeover by Thaksin’s company that now holds over 53% share, however, the government not surprisingly relaxed the rules, allowing iTV to freely add non-educational content like entertainment programs). and the other controlling two of the country’s best newspapers. Thanks to the good relations between the two men, the government’s plan to sue the Bangkok Post for Bt1 billion in damages concerning the runway story will most likely be scrapped. Or if the case is to be pursued for whatever reason, no money will ever be paid.
So, what will happen next?
The future is uncertain, and it seems that in this new world of intertwined interests and increasing vulnerability of media firms, nobody is safe.
After this upheaval of Thailand’s media industry triggered by the Goliaths of the political and business scenes, it will be up to the Davids– who are only armed with PCs and computer notebooks and the endangered right to tell the truth to the public– to keep the status quo alive.
If they fail in their constitutionally protected duty to rise above ownership and any conflict of interest and simply be journalists, we may have already had one last look at the Thai media industry as we know it.