Media24 pauses job cuts as it awaits legal rulings

Media24 is continuing consultations with staff under its section 189 process in which hundreds of jobs are on the chopping block.

The company said it would not make any cuts or shut down any of its embattled print businesses until a merger comprising the sale of its media logistics business to Novus is approved. 

“Media24 confirms that it will not implement any retrenchments (or newspaper closures) until such time as the Competition Commission process has been finalised relating to its proposed sale of On the Dot, the community newspapers and Soccer Laduma to Novus,” Ishmet Davidson, CEO of Media24, said in a statement sent to Business Day. 

In mid-June, Media24 said it was seeking to close the print editions of five newspapers, transitioning three of them into digital-only brands. The strategic move marked a shift in the SA media landscape and puts 400 jobs at risk. 

Print editions on the chopping block are Beeld, Rapport, City Press, Daily Sun and Soccer Laduma, as well as the digital editions of Volksblad and Die Burger Oos-Kaap and the digital hub SNL24.

Those transitioning to digital-only publications are Rapport, City Press and Daily Sun. As digital brands, they will reside on the group’s Netwerk24 and News24 platforms.

Business Day understands that by Thursday evening, the position of Media24 was that no retrenchments would occur until the merger was approved and that no newspapers would cease printing before the end of the competition process.

This comes after competing printing and publishing group Caxton approached the Competition Commission to oppose the closure of the titles and the sale of the media logistics business.

Competing offer

Media24 reached a deal with Novus Holdings to sell its media logistics business, On the Dot, and its community newspaper portfolio subject to regulatory approvals. Caxton has made a competing offer to buy out On the Dot and the community newspaper portfolio.

On the Dot is a specialist logistics provider to SA’s print industry, including magazines, newspapers, leaflets and books.

“It never was our intention to implement the proposed restructuring before approval from the relevant authorities, since the sale of On the Dot is a direct consequence of our intention to close the affected titles (print editions of Beeld, City Press, Daily Sun and Rapport),” said Davidson. 

The company has “every intention of complying with the relevant regulatory and statutory requirements”.

However, “this undertaking does not include ceasing the actual section 189 consultation process as it relates to the affected newspaper titles and the proposed closure of the digital hub SNL24”, he said. 

In 2022, Media24 sold most of its operations in KwaZulu-Natal to Capital Newspapers for an undisclosed sum. Capital Newspapers, a Pietermaritzburg-based company, is operated by Caxton. 

Media24 had said it would start consultations with staff and the transfer of the businesses to the new owner this week. September 30 is earmarked as the last day of publication for the affected newspapers.

The restructuring could lead to at least 400 job losses, with another 400 potentially transferring to Novus on the sale of On the Dot and community newspapers.

gavazam@businesslive.co.za