The War for South African Media: Caxton Takes Constitutional Court Bid
JSE-listed Caxton and privately-run Capital Newspapers have escalated their fight against Media24’s proposed sale of its distribution subsidiary, On the Dot, to Novus Holdings by filing an appeal with the Constitutional Court (ConCourt).
The move comes on the back of the Competition Appeal Court’s ruling, which paved the way for Media24 to shut down several of its print publications, including Beeld, Rapport, City Press, and Daily Sun.
Read: ‘Media24’s merger aimed to crush print competitors’
Paul Jenkins, chair of Caxton, has voiced his deep concern about the impact of the decision on South Africa’s media landscape, saying that the closure of these newspapers marks a critical moment for journalism in the country.
“We believe a different legal interpretation may yield another outcome,” he said, as stakeholders warn that the loss of these long-standing publications could diminish journalistic diversity and limit access to independent news sources for South Africans.
Jenkins and his co-appellants are taking a last-ditch effort to overturn the ruling in a bid to safeguard media plurality in South Africa.
Media24 first announced its restructuring plans in mid-2024 in response to declining advertising revenue and a shrinking print readership. The company seeks to shut down multiple regional and national newspapers, exit print distribution, and sell On the Dot to Novus Holdings.
The sale has been approved by the Competition Commission, which concluded that it did not pose substantial anti-competitive risks.
Read: The battle for SA journalism [Dec 2024]
However, Caxton and Capital Newspapers have opposed the transaction, arguing that it could further weaken competition in the SA media sector and create a “print media void,” particularly in smaller towns and rural communities where independent newspapers are already struggling to survive.
The Ramifications of a Win or a Loss
The outcome of the case at the Constitutional Court will set an important precedent for media competition and consolidation in the country. A win for Caxton and Capital Newspapers could force Media24 to rethink its exit strategy, potentially preserving some of its print publications.
Conversely, an unsuccessful appeal will signal the end of an era for some of SA’s most influential newspapers.
Broader Context: Media Landscape at Stake
Caxton and Capital Newspapers have highlighted the broader ramifications of the case, warning that the disappearance of these newspapers would leave a gap in news reporting, particularly for lower-income citizens who may not have reliable access to digital news platforms.
As the case heads to SA’s apex court, stakeholders will be watching closely to see the extent to which the media landscape is reshaped in the years to come.
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