Media24-Novus deal faces legal review amid competition concerns

Caxton and Capital Newspapers argue merger could reduce access to independent local news.

Caxton and Capital Newspapers have taken legal action to halt the Competition Commission’s approval of Media24’s merger with Novus Holdings.

The deal, which involves Novus acquiring Media24’s distribution arm, On-the-Dot, and community newspaper portfolio, has sparked fierce opposition from rival media houses concerned about its impact on media diversity and employment within the sector.

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Read: Media24 to retain all journalists of to-be-closed newspapers

Caxton and Capital Newspapers have applied to the Competition Appeal Court, seeking an interdict to prevent the merger from being finalised until a comprehensive review of the commission’s decision can be undertaken.

According to a joint statement by Paul Jenkins, Caxton’s non-executive chair, and Riquadeu Jacobs, executive chair of Capital Newspapers, the merger could spell the end of Media24’s paid-for daily and weekly publications — a move they argue threatens South Africa’s already fragile media ecosystem.

“The approval of this merger is deeply regrettable, as it will likely force the closure of Media24’s paid print titles and reduce the availability of independent, local news,” says Jacobs.

The media houses allege the merger’s foreclosure effect will stifle competition, erode journalistic diversity, and ultimately harm readers’ access to trusted information. Caxton and Capital Newspapers contend that their submission, backed by economic analysis, demonstrated the serious risks to South Africa’s media landscape posed by Media24’s consolidation.

Read: Media24’s decision is ‘disingenuous and self-serving’

Media24 celebrated the commission’s decision earlier, saying the transaction with Novus had been finalised. Media24 interim CEO Raj Lalbahadur hailed the ruling as an endorsement of Media24’s digital-first strategy, which pivots the company toward a streamlined digital journalism model in line with evolving consumer preferences.

“This ruling enables us to secure a sustainable future for quality, independent journalism, with investments focused on our digital platforms, News24 and Netwerk24,” Lalbahadur said.

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Effective January 2025, Media24’s remaining print editions, including Beeld, City Press, Daily Sun, and Rapport, will transition to digital-only formats, with News24 and Netwerk24 becoming core offerings for South African news consumers. The company aims to leverage its digital platforms to deliver enriched, personalised content at scale, hoping to meet subscribers’ growing demand for accessible, high-quality online journalism.

Read: Media24 faces new offer amid controversial restructuring

While Media24 pushes forward with its digital transformation, Caxton and Capital Newspapers argue that the merger’s rapid approval has overlooked critical public interest concerns, potentially harming the plurality of South Africa’s news industry. They vow to continue their fight for a diverse and competitive media landscape, emphasising the need for alternative voices to thrive alongside Media24’s digital giants.

Read: Caxton sounds alarm over Media24

The pending review could have far-reaching implications for South Africa’s media industry. It could set a precedent for future mergers and acquisitions as the sector navigates a turbulent shift from print to digital. As the case heads to the Competition Tribunal, industry eyes are on the outcome, which could shape the future of news distribution in the country.

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