Media24 Divests Community Newspapers and On the Dot to Novus Holdings with Competition Commission's Blessing

South Africa's Media24 has officially completed the sale of its community newspaper portfolio, including popular titles such as Soccer Laduma and Kick Off, as well as its media logistics operations On the Dot (OtD), to Novus Holdings. This significant transaction comes with the green light from the Competition Commission and marks a transformative step for the media conglomerate.

Interim CEO Raj Lalbahadur highlighted that Media24 will promptly pursue this new direction, enhancing its digital presence particularly for flagship platforms News24 and Netwerk24. The company's digital strategy encompasses an array of improvements, from elevating journalism standards to pushing for faster news delivery, integrating personalization, and expanding the offering of enriched content.

In the spectrum of print media, a definitive end date has been announced, with Beeld, City Press, Daily Sun, and Rapport ceasing their printed editions on December 31st, 2024. Nonetheless, the digital journey for these publications continues, with Daily Sun transitioning to a standalone, free-access website and other papers such as Rapport and City Press embedding themselves within Netwerk24 and News24 as digital-only brands.

This alignment also includes Volksblad and Die Burger Oos-Kaap, which will retain their readership through PDF editions on Netwerk24. This strategic move caters to the nearly 100,000 subscribers who already enjoy the comprehensive offerings of the platform.

Understanding the merger's implications, the Competition Commission imposed certain conditions to promote fair competition and safeguard employment. It required Novus Holdings to maintain separate offerings of coldset printing and distribution services for three years to ensure no competition concerns arise from an undue bundling of services.

In an assurance to the employees, the Commission mandated job security, stipulating that no layoffs would result due to the merger for a period of three years post-implementation. Furthermore, should there be any retrenchments at Media24 for operational reasons unrelated to the merger, those employees will be given preference for rehiring at either Novus Holdings or Media24, provided they possess the appropriate qualifications and experience.

The implications of this sale are considerable for the South African media landscape, as it signals a continued shift toward digital media consumption and the associated reconfiguration of traditional news delivery services.