Asia’s next top producer: mm2 Asia banks on M&A opportunities for growth

Since its IPO, it’s been on an acquisition spree.

The movie/TV production company is planning to dominate Asia with its unique model, which is less reliant on box office performance by limiting its equity stake of film budget to no more than 10%.

According to analysts from CIMB, it’s also looking to grow inorganically, going on an acquisition party ever since its initial public offering (IPO). It has since bought a cinema business in Malaysia, a 51% stake in 3D animation and graphics company Vividthree Productions and 70% of Millinillion, a digital media start-up.

“While the 5 new cinemas offer recurring income, other investments have enabled mm2 to expand into other areas of content creation. Management has stated that it remains open to more M&A opportunities,” CIMB said.

Meanwhile, CIMB says mm2 is also primed for organic growth on back of its strong pipeline and potential for overseas expansion.

“Compared with 9 movies in FY15, mm2 targets a stronger production pipeline of 18 movies in FY16, of which 6 will be produced in North Asia, with typically bigger budgets,” CIMB said.

“mm2 also seeks to work with established Chinese media companies on producing reality TV or drama serials that are larger in scale,” CIMB added.