Telkom announced on Monday (31 March) on SENS, the JSE news service, its board has “taken the decision to substantially reduce its investment in Telkom Media”.
Telkom Media spokesperson Chris van Zyl says Telkom Media is now investigating other sources of funding and hopes to make an announcement “in due course”. Telkom’s announcement was discussed at a Telkom Media board meeting on Tuesday (1 April).
Telkom Media “cannot at this stage” comment on the implications of the announcement for its operations, personnel or launch date. Telkom Media previously said it planned to launch its 24-hour news channel by the end of June.
Telkom expects to sell its stake or part thereof by June or to be able to give details of its plans in this regard by then. Potential buyers have not yet been secured, href=”http://www.fin24.com/articles/default/display_article.aspx?ArticleId=1518-24_2297419″ target=_blank mce_href=”http://www.fin24.com/articles/default/display_article.aspx?ArticleId=1518-24_2297419″Fin24 reports.
It will for the time being continue to fund Telkom Media’s operating expenditure.
According to href=”http://www.bloomberg.com/apps/news?pid=20601116&sid=a3W39uuytarI&refer=africa” target=_blank mce_href=”http://www.bloomberg.com/apps/news?pid=20601116&sid=a3W39uuytarI&refer=africa”Bloomberg.com Telkom plans to reduce its 66%-stake in the pay-TV operator to “the smallest possible level”.
href=”http://www.itweb.co.za/sections/telecoms/2008/0803311614.asp?O=FPTOP&S=Business&A=BUS” target=_blank mce_href=”http://www.itweb.co.za/sections/telecoms/2008/0803311614.asp?O=FPTOP&S=Business&A=BUS”ITWeb reports Telkom believes Telkom Media has a strong business case, but cites media companies’ long payback periods as one of the reasons for its decision.
Ã¢Â–Â This is an updated version of the story “Telkom Media board to discuss announcement”, first published on TheMediaOnline on 1 April.