Impact of Acquisition of PT.Indosiar Karya Media,Tbk by PT.Elang Mahkota Teknologi,Tbk

Abstract

Acquisition is the process of taking over another company or its subsidiaries hereinafter be combined into a single company, in this case PT Indosiar Karya Media, Tbk which known as Indosiar being acquired by PT Elang Mahkota Teknologi, Tbk which known as EMTEK. Has become a hot issue among people in around 2008. Acquisition Indosiar by buying its shares. The acquisition act raises suspection and feared whit in in that industry to cause a monopoly market because it was to be creating sizeable share in Indonesia. The acquisition was legally effective on May 16, 2011. Until now no one has studied in depth the impact of acquisition for both parties. The main reason EMTEK acquired is to be one of the leading business industry in Indonesia to produce and distribute broadcast content to audiences through various media platforms. On the other hand, Indosiar let go of its shares because it wanted to focus on food and farm products which its core business. This study is used descriptive case study, which aims to analyze impacts of Indosiar acquisition by EMTEK, secondary data is used and gathered from the Indonesia Stock Exchange, Competition Commission Business, Website of PT Elang Mahkota Teknologi, Tbk and PT lndosiar Karya Media, Tbk and related papers.

This study will analyze in depth the impact of the acquisition for acquired and acquiring the terms of the parties affected, such as employment, corporate management, shareholders and the media industry. For the acquiring company side, positive and negative impacts to employee, such as the uncertainty on the part of the Board of Directors, Managers and employees; to top management, such as the uncertainty on the part of the Board of Commissioner and Director and regulation taken; to corporate management, acquisition impact on financial synergies and market leader; to shareholder acquisition impact on increased liquidity and to media industry acquisitions impact on reduce competition. On the other band acquisition also had positive and negative impact for the acquired company, for the employee, such as the uncertainty on the part of the Board of Directors, Managers and employees and the transfer of knowledge from the acquiring company employees: to corporate management company, acquisition impact on financial synergies, market leader, adding or technology and management skills; to shareholder, acquisition impact on lower liquidity and to broadcast industry, impact acquisition will not hamper the entry or new competitors. What is interesting in this study is the positive impact is not necessarily acquired for acquiring, as well as for its negative impact