Caxton, a company listed on the JSE, along with the privately-owned Capital Newspapers, has announced their decision to directly appeal to the Constitutional Court (ConCourt) after the Competition Appeal Court ruled that Media24 is permitted to close several print publications, such as Beeld, Rapport, City Press, and Daily Sun.

This ruling, delivered on Christmas Eve 2024, clears the path for Media24 to initiate significant restructuring efforts that include ceasing print operations and selling its distribution unit, On the Dot, to Novus Holdings.

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Read: ‘Media24’s merger aimed to crush print competitors’

Paul Jenkins, chairperson of Caxton, has raised significant concerns regarding the potential impact of this ruling on South Africa’s media landscape.

“The shutdown of these Media24 newspapers marks a critical turning point for journalism in our nation. We believe that a different legal interpretation could lead to an alternative outcome,” he commented over the weekend.

Jenkins, alongside other industry leaders, has warned that the loss of these time-honored publications could reduce journalistic diversity and limit access to independent news for the South African populace.

Media24 first announced its restructuring plans in mid-2024 in response to ongoing financial struggles stemming from declining advertising revenue and a diminishing print readership.

The restructuring will entail closing various regional and national newspapers, withdrawing from the print distribution sector, and selling On the Dot to Novus Holdings. The Competition Commission approved the sale in October 2024, deciding that it did not pose significant competitive concerns.

Read:
The battle for SA journalism [Dec 2024]
Media24-Novus deal faces legal review amid competition concerns [Nov 2024]
Media24 to retain all journalists of to-be-closed newspapers [Aug 2024]

Nonetheless, Caxton and the Pietermaritzburg-based Capital Newspapers have strongly opposed the transaction, arguing that it could further erode competition within the South African media sector.

They have expressed concerns that this action may create a “void in print media,” particularly in smaller towns and rural areas where independent newspapers are already struggling to survive.

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In December, the Competition Appeal Court dismissed their urgent request to stop the sale, thereby effectively approving the deal.

Despite this challenge, Jenkins and his fellow appellants remain determined. Their appeal to the ConCourt represents a final effort to overturn the ruling to safeguard media plurality in South Africa.

Broader implications …

Caxton and Capital Newspapers have pointed out the larger ramifications of this case, warning that the closure of these newspapers would create a reporting void, particularly for lower-income individuals who may have limited access to online news platforms.

As the case proceeds to South Africa’s highest court, the outcome could establish a crucial precedent regarding media competition and consolidation throughout the nation.

A ruling in favor of Caxton and Capital Newspapers could prompt Media24 to reconsider its divestment strategy, potentially saving some of its print publications. Conversely, a loss for the appeal would mark the end of an era for several of South Africa’s most notable newspapers.

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