ANN7 could, would, probably will have new owners by year end

The controversial Gupta family today (rather unexpectedly) announced that they will be selling all their ownership stakes in their South African businesses. Among these is a stake in Infinity Media, which runs ANN7 (and national newspaper, The New Age).


Currently, Oakbay Investments, which is the Gupta's investment arm, owns a 35% stake in Infinity Media. Mabengela Investments, which owns a 21% investment in the company, is owned and ran by friends and associates of the Gupta family, including Duduzane Zuma. (The rest of Infinity Media's owners is made up of ANN7's managers and a 35% stake owned by an Indian media conglomerate which also owns Zee World).

The family hopes to divest from the country by the end of the year and say they are in talks with international investors about purchasing their business interests.

The Guptas' stake in Infinity Media will most likely be sold indirectly when Oakbay is sold, though the possibility remains that the media house could be spun off on its own from investors that are not interested in taking over a newspaper and tv news channel, both of which have struggling brands.

Both ANN7 and The New Age are going to struggle in the coming year when it comes to ad revenue (as if they have not already been struggling). Most companies that advertise through the two avenues are either Gupta-owned or are owned by associates of the Gupta family, if not government agencies.

That in itself would deter investors who obviously do not want to invest in businesses looking at declining revenue streams. When you purchase a media house, one of the bigger things your are actually purchasing is the brands and the brand loyalty. After all, it is easier to start a newspaper than it is to build a loyal base. In this case, both have been accused of favouring certain individuals politically, proven to infringe upon workers rights, and have small market shares, among others, all factors that could chase investors away.

The next few months just unexpectedly became interesting.

[Persoanlly, I hope ANN7 gets owners that breathe new life into the channel. Though they continue to invest in young talent, they do seem to be plateauing and new, exciting leadership might just be what they need to break the next ceiling]