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Hires, Wins & Business
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AOI Pro and TYO Inc to Join Forces, 2 months, 2 weeks ago

Both companies are to retain unique brands under a yet-to-be-named new joint holding company

AOI Pro and TYO Inc to Join Forces

Two behemoths of the Japanese commercial production industry AOI Pro and TYO Inc have announced that they are to join forces. The two companies are to establish a joint holding company and integrate their senior management so that they can pool skills, operate more competitively and navigate the rapidly evolving media landscape.

It’s big news in Tokyo – AOI Pro was founded in 1963 and TYO Inc. in 1982, so between them they have a combined experience of 87 years in the commercial production and advertising space.

As yet, the new entity does not have a trading name. It’s expected that the process of integrating management and establishing the holding company will be completed by January 4th 2017. Under the new joint holding company, both AOI Pro and TYO Inc will maintain their independence in terms of business operations, but the new parent company will determine mid- and long-term strategies.

While both companies will retain their uniqueness in terms of sales and marketing, they plan to standardise training processes and promote efforts to streamline the businesses. Moreover, joint procurement, mutual use of post-production departments and film equipment hiring is hoped to make the companies more cost effective and profitable.  As AOI Pro continues to build relationships direct-to-client, it is also hoped that they will benefit from TYO Inc’s expertise in the area.

In terms of international operations, AOI Pro has a significant presence across Southeast Asia and China as a video production company, while TYO Inc has been pursuing mergers and acquisitions with creative agencies, meaning no functional overlap but plenty to be gained from cooperation.

Under the new joint venture, AOI Pro is expected to continue to expand its core business of advertising video production, focusing on TV commercial production, as well as pushing forward in the video content marketing business. Meanwhile, having increased its sales force, TYO Inc will also expand its traditional commercial production business as well as opening a PR business, which they hope will open up new opportunities in combination with their production expertise.

The decision to combine efforts and work together was taken to make the most of the opportunities and growth offered by the proliferation of digital media channels and new advertising technologies whilst protecting against potential growth slowdowns in more traditional channels.

A joint document released today explained:  “As a result of a comprehensive assessment of the above-noted circumstances surrounding the advertising business, as well as the visions, operational policies, business strategies, etc. of both companies, we have concluded that it is essential to the mid- to long-term growth of both companies to integrate their operations based on a spirit of equality and form a new group that leads the industry and to maintain “greater share”, “stronger negotiation power”, and “healthier capital” through consolidating and utilising operational resources under common ideas and strategies, and that this will lead to gaining stronger competitiveness by building even more advanced business models.

For more information, click here to read the joint letter released by both companies.