Naspers is in talks to sell DSTV to MTN Group

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With better internet connectivity and sluggish economic growth, many individuals across Africa have switched to streaming rather pay for Tv. This has seen companies like Multichoice (owner of DSTV & Gotv) which depended on its exclusive rights to the English Premier League among others lose out as many switch to cheaper alternatives.

In Kenya, Pay Tv service providers like have also been affected. Zuku which also provides Pay Tv services is currently contemplating on whether to sell or close down its Tv business. The failure of this business division is what has led to the current restructuring that will see some staff being declared redundant.

According to Bloomberg, Naspers which owns Multichoice is in talks with the MTN Group Ltd, Africa’s largest wireless operator on the purchase of the Pay Tv division. The deal will not include the South African division which is still highly profitable. However, at the moment no decision has been reached on the same.

Last year, the Multichoice was able to arrest a decline in subscriber numbers but its earnings before interest, taxes, depreciation and amortization declined 33% to stand at USD 331 Million. This was due to the fact that customers are charged in local currencies and continued weaknesses of the currencies in many African economies resulted in lower U.S dollar revenues.

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