$5million for an online firm with no presence – Astro Group Buys 50% stake in Mogae Digital

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Malaysia based Astro group has bought 50% stake (for $5million) in Mogae Digital,  a company promoted by Sandeep Goyal and Tanya Goyal, who are the Indian JV partners of Japanese giant Dentsu, the single largest ad agency in the world.

What’s interesting is that Mogae Digital’s website Mogae.com is still under construction – and that raises tons of questions on valuations (i.e. if the numbers are right).

The joint venture has lined up couple of product launches, including a social networking portal for mobile phones and a local search engine, this year [ET].

“Mogae Digital has the creative understanding required to speak to diverse audiences in the emerging new media space. The products that they have created are versatile and effectively engage consumers at different levels. Given Astro’s already large interest in the media space, Mogae Digital will be a good addition to our bouquet” – Astro.

Well, how does that translates to building a local search expertise?

It seems local search market is the next hype in the Indian market – everybody seems to have one!

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Update: It seems there is major confusion regarding the $5mn amount. E4M reports – “The Astro Group of Malaysia has picked up a 50 per cent stake in Mogae Digital Pvt Ltd, promoted by Sandeep and Tanya Goyal. Astro Group will invest up to $5 million in the venture.”

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