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Multiple choices for MultiChoice after Naspers' unbundling or way of the dinosaur?

#Newswatch: It's not necessarily a death knell. There's speculation on potential positive outcomes following Naspers's announcement that it will unbundle MultiChoice to shareholders early next year and separately list the company on the JSE.
Multiple choices for MultiChoice after Naspers' unbundling or way of the dinosaur?
© Michael Rosskothen via 123RF.com.

In an initial report on Business Day, It was said that investors cheered Naspers’ decision to unbundle video entertainment business MultiChoice onto the JSE in the first half of 2019 and hand its interest in the DStv operator to its shareholders.

But the bulk of those cheerers are Naspers’ investors, not those keen to invest in MultiChoice. According to Fin24, “African pay-TV heavyweight” the new MultiChoice Group faces an uncertain future as a newly listed company, as many say the traditional TV model is going the way of the dinosaur. This despite:

Estimated valuations by analysts and investors have ranged from $5bn to $6.6bn - plus the potential for dividends – compared with zero as part of the wider Naspers empire.
CEO Bob Van Dijk is also quoted in Business Day as saying: “I feel confident about putting the business on its own legs.”

Way of the dinosaur or time to play Catch Up?

TechCentral adds that MultiChoice is confident of arresting the DStv Premium customer decline.

MultiChoice has taken note of criticism over its high monthly subscription fee and put plans in place to offer lower-tier packages.

It’s also set to keep with the times and improve its content offering to Premium subscribers through ShowMax, which is available free of charge to Premium subscribers; as well as offerings like online streaming platform DStv Now, covering live channels and Catch Up content.

Some sentiment on social media is hopeful:

So, will investors and subscribers alike benefit from the outcome? Only time will tell…

Read more

Naspers to unbundle and list MultiChoice:Business Day
Set free by Naspers, MultiChoice plots its path: Fin24
MultiChoice confident of arresting DStv Premium decline: TechCentral

About Leigh Andrews

Leigh Andrews AKA the #MilkshakeQueen, is former Editor-in-Chief: Marketing & Media at Bizcommunity.com, with a passion for issues of diversity, inclusion and equality, and of course, gourmet food and drinks! She can be reached on Twitter at @Leigh_Andrews.
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