MBC group, one of the region’s oldest and largest broadcasters, is considering an initial public offering (IPO), reportedly to take place in either the Dubai or Saudi stock market over the next two years. But due to a tradition of financial nondisclosure across the regional media industry, it is difficult to estimate how much the group could raise in a flotation. MBC is reportedly owned and founded by Walid Al Ibrahim, the brother in law of the late ruler of Saudi Arabia King Fahd. According to Jihad Ballout, Media Representative for MBC-owned Al Arabiya news channel, an IPO could help pump more cash into MBC’s operations. “Given its financial status, media services, and viewership numbers, it would be a good proposition to actually attract money and sort of expand and diversify into other media services as well,” he told MEB Journal.
If MBC does move ahead with the stock flotation plan, it could become the first broadcasting network in the region to go public with its figures. However MBC is not providing any financial information ahead of the possible offering. “There’s nothing sinister about that, really,” Ballout explained. “Why should I reveal financial details and plans to my competition at the time when it’s not yet reciprocated?”
MBC is also looking at expanding into the English programming market, and possibly complimenting Al Arabiya with an English-language news channel. However senior Al Arabiya executives were quoted in news reports as being skeptical about the profitability of such a venture. “This is not the culture of MBC. Its culture has always been doing things with an eye to make money,” said Ballout, reacting to statements made earlier by Arabiya general manager Abdul Rahman Al Rashed, who was quoted by Arabian Business as saying an English channel “has no value commercially in my opinion”. However Ballout said the network would go ahead with a feasibility study for the project, and might consider a plan to share global news resources. “I think he (Al Rashed) is just trying to give the idea that it is an expensive proposition. Just look at Al Jazeera International, I think they reached over $300 million in preparations alone.