Caxton Appeals To Constitutional Court Over Media24's 2.5 Million Restructuring Deal
- 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.
- Media24s 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 Africas 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 Media24s 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 setbacksCaxton 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 Media24s 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.