Media24 Decides Against Caxton's Offer for On the Dot and Community Newspapers

South African media conglomerate Media24 has made clear its stance on the future of its operations by rebuffing a recent purchase offer from Capital Newspapers/Caxton and affirming its commitment to a digital news strategy. This comes on the heels of Media24’s decision last month to cease the print editions of four prestigious publications, stirring notable concerns about the impact on the country’s media landscape.

Ishmet Davidson, CEO of Media24, addressed the offer from rival media group Capital Newspapers/Caxton, clarifying that the formal proposal for the purchase of On the Dot (Media24’s distribution arm), along with Media24’s collection of community newspapers, had been considered. However, Media24 will proceed with the pre-existing arrangement with Novus Holdings to divest these assets, including the widely-read Soccer Laduma, subject to regulatory consent. This course has been chosen in tune with Media24's aspiration to enhance digital news offerings in favor of print, as supported by the overwhelming preference of its audience.

Media24's digital transition includes perpetuating the Rapport and City Press under their respective digital banners on Netwerk24 and News24, strengthening their Sunday news provision. An e-news website is also in development to reimagine Daily Sun's presence in the digital domain.

Capital Newspapers/Caxton had previously made public its unease over the potential loss of the four newspaper titles through a printed advertisement, underlining a perilous void they might leave behind. In contrast, Media24 voiced anxiety regarding the possible concentration of community newspaper ownership under Caxton, presenting grave concerns over the editorial diversity and independence crucial to democratic media.

The proposition from Media24 delineates a media-future that guards against the monopoly of competition by preventing Caxton—a major newspaper printer—from consolidating its sphere of influence to near-total control of the national media distribution market.

Riquadeu Jacobs, MD of Capital Newspapers, indicated disappointment with Media24’s decision, signaling a potential challenge when the deal reaches competition regulators. Accusations have been leveled against Media24 from Caxton’s chair Paul Jenkins, insinuating a sale push for On the Dot had been in the works for months, accompanied by unsettling directives from high-level executives at Naspers, Media24's parent company.

Media24, in the interim, is moving forward with a Section 189 retrenchment process but remains open to propositions for the purchase of Beeld, provided that about 30 positions are safeguarded across various facets of the publication. These roles encompass editorial, production, sales, and administrative capacities, crucial for the continuity of Beeld, should a new proprietor take over.

The labor union Solidarity, representing several Media24 employees, maintains a cautious stance as it navigates the delicate nature of the unfolding developments.

Media24's decision is a definitive stance to prioritize a digitally-driven future over traditional print media, while also emphasizing the importance of maintaining a competitive and diverse South African media environment.