Telkom sold its controlling stake in Telkom Media, now Super 5 Media, for just R68m, the JSE-listed telecommunications group’s 2010 annual report has revealed.
This means Telkom lost a net R403m from the failed venture. It had loaned the business R471m, a loan that it has now written off, according to the report.
The idea to launch in the pay-TV market was made by former Telkom CEO Papi Molotsane, who was later axed. Molotsane’s successor, Reuben September, who left Telkom recently, sold the stake to Shenzhen Media.
Super 5 Media — it’s new name — has since struggled to get off the ground. It’s been through several rounds of staff retrenchments in recent months and its future appears to be bleak.
One of the four companies to receive a pay-TV licence from the Independent Communications Authority of SA, Super 5 Media must begin providing a pay-TV service before the end of August or risk losing its licence. — Duncan McLeod, TechCentral
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