Naspers in talks with MTN over sale of Multichoice Africa
Naspers, Africa's largest company by market capitalization, is considering the sale of its pay-TV business – Multichoice Africa – owing to sluggish economic growth in key markets and the growing trend of viewers switching to online alternatives.
The Cape Town-based company and MTN Group, Africa's largest mobile operator, are reportedly in talks on a deal for Multichoice Africa although no agreement has been reached, according to Bloomberg.
The sale of Mutichoice Africa would further move Naspers away from its traditional media businesses – which includes newspapers and MultiChoice's DSTV– to the company's more profitable Internet division, led by a $107 billion stake in Chinese Internet giant, Tencent. MTN, on the other hand, could benefit from the deal by utilizing Multichoice as a data-enabled value-added service amidst a decline in revenue from voice calls and text messages.
With a valuation of about $91 billion, Naspers is a global Internet and entertainment company with operations in 130 countries. The company has made investments in internet companies, including Konga, a Nigeria-based online retailer; and OLX, a classifieds website.