GMM Tai Hub Co Ltd, a film-studio venture of three Thai media giants, will close its doors after 11 years in business over a stock-listing disagreement.
GTH, the producer of Pee Mak, the first Thai film to break the 1-billion-baht box office, is a joint venture of GMM Grammy (51%), Tai Entertainment Co Ltd (30%) and Hub Ho Hin Bangkok Co Ltd (19%).
The company announced the news on its website on Friday, citing the differences of opinions of its partners.
"Tai Entertainment wants to list GTH on the stock market to raise funds for larger projects and to expand businesses. Heb Ho Hin, on the other hand, thought the company was not ready for such change over next 1-3 years. Since GTH focuses on creative and quality work, Heb Ho Hin believes listing might put pressure on creativity and quality," the statement said.
GMM Grammy, the largest shareholder, saw the advantages in both directions and was ready to accept whichever decision the other two partners agreed on, the statement continued.
"But after a long while, an agreement couldn't be reached. All partners realised continuing without a resolution on this issue would be bad for business.
"All partners of GTH therefore decided to end its business, effective Dec 31, 2015," the statement said.
Boosaba Daorueng, GMM Grammy vice-chairwoman and group CEO, said whether the company should be listed was the turning point.
"In any case, GTH will hold a company meeting and employees will receive bonuses. As for rights management of GTH's library, all sides agreed GMM Grammy should be the manager," she said.
Its films included Fan Chan; Dek Hor; Laddaland; Pee Mak; Hello Stranger; and I Fine, Thank You, Love You. Its TV series hits are Hormones the Series and True Love Next Door, among others.
Grammy shares (GRAMMY) fell 0.89% to 11.10 baht in trade worth 2.17 million baht on the Stock Exchange of Thailand on Friday.