Media24 boss Ishmet Davidson on the way out

Media24 boss Ishmet Davidson is stepping down with immediate effect, having made sweeping changes at the Naspers-owned publisher in the past year.

The group did not disclose reasons for the hasty exit, merely calling it retirement. Labour union Solidarity is hoping the leadership change will not disrupt retrenchment talks.

This comes as the group is selling its media logistics business, On the Dot, and its community newspaper portfolio to Novus Holdings subject to regulatory approvals. Rival publisher Caxton has made a competing offer for the assets.

Media24’s board announced on Thursday that Davidson “will retire” as group CEO and step down as a board member, effective September 9.

He will be succeeded by Raj Lalbahadur, now the group CFO, as interim CEO, while remaining involved in the company “in an advisory capacity”.

Davidson was appointed CEO in October 2018 after a three-decade career in media and publishing. He joined the group in 2012 as head of community newspapers, going on to become head of its news division in 2014, after which On the Dot and Lifestyle were added to his responsibilities as Media24’s first CEO for print media.

In a statement, Davidson said: “Although I look forward to my retirement, I’m sad to be leaving Media24. The company has always been at the vanguard of exceptional journalism as well as business and media innovation, and able to adapt timeously to the ever-evolving media landscape. This was made possible by the guidance and support of the board of directors and our chair, Prof Rachel Jafta, for which I thank them with much appreciation.”

Lalbahadur inherits — at least in the interim — a group going through huge changes implemented under Davidson’s watch. In mid-June Media24 said it was seeking to close the print editions of five newspapers, transitioning three of them to digital-only brands, placing 400 jobs at risk.

Print editions on the 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 digital hub SNL24.

As digital brands, the affected print publications will reside on the group’s Netwerk24 and News24 platforms.

Solidarity, now representing journalists in the Section 189 process with Media24, told Business Day: “While we have not engaged directly with Mr Davidson, the process with Media24 remains complex.

“Our priority is to ensure the best possible outcomes for our members, and we are committed to navigating this challenging landscape. With the change in leadership, it is crucial that stability is maintained in the ongoing negotiations.”

Solidarity hopes that both the interim and long-term leadership “will prioritise the interests of journalists, particularly those working in English and Afrikaans publications, ensuring the continued vitality of journalism in SA”.

Naspers said the 2024 financial year was turbulent, with Media24 recording mixed results. Shortfalls in media revenue, led by a contraction in digital advertising and shrinking circulations, ate into the company’s bottom line.

Media24’s revenue for the year to end-March declined 16% to $182m, while a trading profit plunged from $7m to $2m.

The group has rejected Caxton’s advances, saying it will not renege on its agreement with Novus. It is willing to entertain an offer from Caxton, or another party, only for the Beeld publication “in the interest of minimising potential job losses ... and keeping Beeld alive as a brand that carries sentimental value”.

This comes as the company appears to be shutting down two of SA’s best-known magazine publications, Drum and True Love.

Lalbahadur, who became CFO in 2023, joined Media24 in 2007 as CFO for Educor after holding positions in the petroleum and paper-manufacturing industries, among other sectors, and the SA Revenue Service.

Update: September 5 2024
This story has been updated with comment from Solidarity.

gavazam@busineslive.co.za