Read the Campaign Asia report on the merger here.
Leading Shanghai social media agency, Resonance, announces a merger with Beijing counterpart Skye Media. The merger will see the Skye Media brand folded into Resonance, resulting in a combined headcount of 80 across the two offices. SI Partners advised on the deal.
SI Partners Hong Kong structured the merger of the two companies on all levels including unifying product streams, methodologies, finances HR and management. Alyssiah Tsui, Director at SI Partners, explained: “The similarities in product and quality of work, as well as rapid expansion of both agencies make this merger a natural consolidation in the market. They are situated in different cities, so there is little geographical overlap, which provides a great platform for growth for both businesses.”
These award-winning agencies provide social media activation and amplification, and market entry research services to a client list of top international lifestyle, fashion and travel brands throughout China.
Paul McNeill, founder of Skye Media, expects the merger to allow the combined agency to capitalise on opportunities for cross-sell. “Resonance’s research capabilities and innovative SMART products have an excellent reputation in the market, and we expect big demand for these services from Skye’s clients.
Both agencies have the same ethical and qualitative approach to business and by combining forces we can invest more resources into staffing, research insights, and staying at the cutting edge of social media in China.”
Rand Han, founder of Resonance, described the merger as a “natural process”. He continues, “Chinese social media continues to evolve as the key players, like Tencent’s WeChat and Sina’s Weibo, adapt and develop their platforms, creating more opportunities for brands to interact with their fans. With a bigger team at our disposal, we will continue to lead from the front.”
The Shanghai team will continue to be run by Sherry Xie, and Michelle Yan will remain to oversee the Beijing team. There will be no disruption to existing projects, with work continuing to be delivered from the respective offices.
“We have been working to position the two agencies for a seamless integration on all fronts; our clients will immediately see the benefits of an enhanced service offering” said Han.
The merger will see Resonance become one of the largest independent social media agencies in China and expected growth for 2017 will see accelerated expansion of the team.
Tsui adds, “SI Partners are delighted to have advised the shareholders of Resonance and Skye Media on a partnership that has such a clear strategic cultural fit and will provide an excellent platform for future growth for both businesses”.