MicroAd Inc. is acquiring a 50% stake in the Indonesian advertising agency PT Mahakarya Adi Indonesia to enhance its digital marketing operations in Southeast Asia and support its new character merchandise business.

Target Information

MicroAd Inc. has planned the acquisition of PT Mahakarya Adi Indonesia, an advertising agency based in Jakarta, Indonesia. This strategic move aims to increase MicroAd's digital marketing operations in the Southeast Asian region while also facilitating the international expansion of its new domestic character merchandise business. For the year ending December 2024, Mahakarya reported revenues of approximately 383 million yen, operating losses of 71 million yen, and a net asset deficit of 99.1 million yen.

Industry Overview

The digital marketing industry in Indonesia has been experiencing significant growth, driven by the increase in internet penetration and mobile device usage. With over half of the country's population now online, businesses are increasingly opting for digital advertising to reach their target consumers effectively. As a result, there has been a notable rise in demand for advertising agencies that can provide comprehensive digital marketing solutions.

Moreover, the COVID-19 pandemic has accelerated the shift towards digital platforms, as companies have adapted their strategies to maintain customer engagement in a socially dista