Naspers in talks with MTN over sale of Mul­tichoice Africa

Financial Nigeria Magazine - - Finance -

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.

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