Bids look like iTV saga all over again

Published on September 16, 2005 - Pundits fear that history will repeat itself if newspapers are swallowed up. To former iTV reporter Suwanna Uyanunt, the promises given to the Matichon Group to relax its resistance to the controversial takeover bid sounded like deja vu – no editorial interference, no meddling with management and no change in the company structure.

“We were given exactly the same promises by those who took over iTV [four years ago],” recalled Suwanna. “Look at what has happened today. The channel no longer enjoys public trust as a free media outlet. Matichon’s credibility could be destroyed by a few billion baht. So do whatever you can now. Don’t just wait and waste your time arguing and negotiating.”

Suwanna, who still moves in television circles, showed up at the Thai Journalists’ Association (TJA) yesterday, as hundreds of media members and supporters gathered to show solidarity with Matichon and the Bangkok Post in their struggle against hostile takeover bids by GMM Grammy. Many appeared dressed in black to show their opposition against the takeover move.

The iTV fiasco also haunts social activist Pibhop Dhongchai. He said the takeover war reminded him of the time when Siam Commercial Bank (SCB), a major iTV shareholder, was offered a “bail-out” package by Shin Corp.

“I’m afraid history may be repeating itself,” he said. “Now Grammy has taken loans from SCB to buy Matichon. Who knows if there will be another major business group to take over Matichon in case its business becomes shaky in the future? And who in this country would have that much money at hand to spend?”

Jade Donawanik, dean of Siam University’s Faculty of Law, added that whoever owned a large number of print media outlets would have powerful bargaining power in politics. He cited Article 87 of the Constitution: “The State shall encourage a free economic system through market forces, ensure and supervise fair competition, protect consumers and prevent direct and indirect monopolies.”

Somkiat Tangkitvanich, a research director at the Thailand Development Research Institute, suggested that well-known Matichon columnists like Nidhi Aeusrivongse, Varakorn Samakoses and Pol General Vasit Dejkunjorn show their opposition to the takeover by boycotting a Grammy-managed Matichon.

He also referred to a chapter in Siamese history, in which King Taksin led the struggle against Burma.

“Matichon and the Bangkok Post may have to resort to King Taksin’s strategy by abandoning old posts and building new ones,” he said.

He added that more than mere tangible assets, the value of Matichon was in the reputation and social trust gained over the decades, which Grammy would not be able to buy.

Pongsak Payakwichian, co-founder of the Matichon Group, came out in the newspaper’s defence. He said the group had never wanted to get rich from entering the stock market. Its shareholders wanted to own the prestigious newspaper and benefit from the dividends stemming from the professionalism and ethical responsibility of its journalists.

Subhatra Bhumiprabhas

The Nation