Table of Contents
Key Points
- Caxton appeals Media24's restructuring plan, opposing print closures and distribution arm sale to Novus Holdings for $2.5 million, citing risks to competition and diversity.
- Media24’s pivot to digital includes shutting major print titles like Beeld and Daily Sun, raising concerns about rural news access and independent press survival.
- Constitutional Court ruling could reshape South Africa’s media landscape, determining the future of print media amid declining advertising revenues and readership.
Caxton & CTP Publishers (Caxton), a media company led by South African media mogul Terrence Moolman, along with Capital Newspapers, is challenging Media24’s restructuring plan in South Africa's Constitutional Court.
The challenge follows a ruling by the Competition Appeal Court, which cleared the way for Media24 to close major print operations and sell its distribution arm, On the Dot, to Novus Holdings for R45 million ($2.5 million).
The decision, issued on Dec. 24, 2024, allows Media24 to proceed with its comprehensive restructuring, including the closure of prominent titles such as Beeld, Rapport, City Press, and Daily Sun. This restructuring is part of Media24's shift toward digital operations, prompted by a decline in advertising revenues and shrinking print readership.
Industry concerns amid legal setbacks
Caxton Chair Paul Jenkins criticized the ruling, calling it “a blow to journalism and media diversity.” He warned that the closure of these publications could deepen challenges for independent newspapers, particularly in rural areas where print remains vital.
Capital Newspapers echoed these concerns, arguing that the sale of On the Dot to Novus Holdings risks creating anti-competitive practices, such as favoring Media24’s publications over rivals. The Competition Commission had previously approved the sale, citing no significant anti-competitive risks. However, Caxton and its allies have raised objections, only to face a setback in December when the Competition Appeal Court dismissed their case.
High stakes for media diversity
The Constitutional Court appeal highlights the broader implications for South Africa’s media landscape. Critics warn that the loss of Media24’s print publications could leave low-income communities without accessible news sources, exacerbating inequalities in information access.
Should the court rule in favor of Caxton, Media24 may be forced to revisit its plans, potentially preserving some print operations. However, an adverse ruling could solidify the decline of traditional print media in South Africa, reshaping the industry for years to come.
Caxton's position in the media industry under Terrence Moolman
Founded in 1980 by Terrence Moolman and Noel Coburn, Caxton has grown to become a leading South African publisher, printer, and packaging manufacturer. The company manages 88 newspapers and 15 magazines and offers various printing and packaging solutions.
Moolman, the CEO and co-founder, holds a 47.2 percent stake in Caxton, making him the largest shareholder and one of the wealthiest investors on the Johannesburg Stock Exchange (JSE). His investment portfolio, worth approximately $100 million, showcases his significant influence in the publishing industry in Southern Africa.
The opposition from Caxton sets the stage for a significant regulatory battle over the future of South Africa’s print media landscape.
