High-profile media battle heads to ConCourt
JSE-listed Caxton and privately-run Capital Newspapers have announced that they are taking their legal battle directly to the Constitutional Court 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.
Moneyweb reports that the ruling, delivered on 24 December, 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 SA’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.
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.
Moneyweb notes that 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.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
