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Arab Media Group (AMG) and the Abu Dhabi Media Company have engaged in a series of discussions about how the two companies can work together, according to several media reports.

It is believed that AMG was close to announcing partnerships that could lead to mergers with two media companies due to falling revenues in the current economic climate.

In an interview with Maktoob Business, AMG chief executive Abdullatif Al Sayegh was quoted as saying: “We’re talking mainly collaboration but that could lead to mergers if there are benefits for all companies. We’re very close with at least two of the parties that we are in discussions with.”

Al Sayegh said that they had also been in talks with the Saudi Research and Marketing Group.

AMG is the largest media organisation in the UAE and includes eight radio stations, three newspapers, television, online, distribution, printing, events management and outdoor advertising under its banner.

The UAE media industry in particular has felt the effects of the global economic recession, with the closure of publishing houses, printing presses and several titles.

“I believe that if we can bring their (Dubai and Abu Dhabi’s) media power together in certain areas then they are going to create a lot of energy, a lot of new products. We might get into a lot of joint ventures together. This would be good news for both parties.”

Al Sayegh said revenue was down by between 30% and 40% so far this year and cost-cutting was already underway.

He added that some of its 2,000 strong staff had been cut as the company implemented a cost-cutting strategy.

With several companies putting their budgets on hold, the company had inevitably felt the brunt.

In a separate interview, Al Sayegh said that alongside Abu Dhabi Media group, the two companies could become the “largest media group in the region”. We have been very alert under the circumstances and are eager to take this opportunity to tie up with suitable partners and engage in positive alliances,” he reportedly said.

Details are yet to be finalised and were pending, he added.


STORY AT A GLANCE

● AMG in talks with Abu Dhabi Media Group and Saudi Research and Marketing Group

● AMG is looking to partner and collaborate that could potentially lead to mergers

● AMG has reportedly said that it has seen a drop of between 30% and 40% in revenues so far this year