Caxton and Capital Newspapers take Media24/Novus battle to ConCourt

JSE-listed Caxton and privately-run Capital Newspapers have announced that they are taking their legal battle directly to the Constitutional Court (ConCourt) following the Competition Appeal Court’s ruling that allows Media24 to shut down several of its print publications, including Beeld, Rapport, City Press, and Daily Sun.

The ruling, delivered on Christmas Eve 2024, clears the way for Media24 to proceed with a major restructuring, which includes closing its print operations and selling its distribution subsidiary, On the Dot, to Novus Holdings.

Paul Jenkins, chair of Caxton, has voiced strong concerns about the impact of this decision on South Africa’s media landscape.

“The closure of these Media24 newspapers marks a critical moment for journalism in the country. We believe a different legal interpretation may yield another outcome,” he said at the weekend.

Jenkins and other industry stakeholders have warned that the loss of these long-standing publications could diminish journalistic diversity and limit access to independent news sources for South Africans.

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ALSO READ: Competition Appeal Court reserves judgment in Caxton/Media24 case

Media24 first announced its restructuring plans in mid-2024 in response to ongoing financial struggles caused by declining advertising revenue and a shrinking print readership.

The restructuring plan entails shutting down multiple regional and national newspapers, exiting print distribution, and selling On the Dot to Novus Holdings. The Competition Commission approved the sale in October 2024, concluding that it did not pose substantial anti-competitive risks.

However, Caxton and Pietermaritzburg-headquartered Capital Newspapers have staunchly opposed the transaction, arguing that it could further weaken competition in the SA media sector.

They have raised concerns that the move could create a “print media void,” particularly in smaller towns and rural communities where independent newspapers are already struggling to survive.

In December, the Competition Appeal Court rejected their urgent bid to block the sale, effectively greenlighting the transaction.

Despite this setback, Jenkins and his co-appellants remain determined. Their ConCourt appeal is a final effort to overturn the ruling in a bid to safeguard media plurality in South Africa.

ALSO READ: Caxton to oppose Media24’s sale of its distribution business to Novus

Broader ramifications …

Caxton and Capital Newspapers have underscored 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, its outcome could set an important precedent for media competition and consolidation in the country.

A ruling in favour of Caxton and Capital Newspapers could force Media24 to rethink its exit strategy, potentially preserving some of its print publications.

Conversely, if the appeal is unsuccessful, it will signal the end of an era for some of SA’s most influential newspapers.

Disclosure: The Citizen is a Caxton publication. Caxton’s majority shareholders are also material shareholders in African Media Entertainment (AME), the owner of Moneyweb.

This article was republished from Moneyweb. Read the original here.