Naspers no Longer needs Cash from ‘risky’ MultiChoice

Naspers no longer needs money from pay-TV operator MultiChoice, which has admitted to facing several risks and uncertainties in its business.

Internet giant Naspers this week announced its video entertainment business MultiChoice Group will list on the Johannesburg Stock Exchange (JSE) on 27 February.

Last year, Naspers said it was planning to list MultiChoice separately on the JSE and simultaneously to unbundle the shares in the business to its shareholders.

This as the pay-TV operator is facing competition from the like of Netflix and other over-the-top (OTT) providers.

Historical cash cow

According to Byron Lotter, portfolio manager at Vestact Asset Management, historically Naspers used MultiChoice as a cash cow to fund new acquisitions.

“I can safely assume the money used to make the original Tencent investment would have come from your DSTV/M-Net subscriptions in the late nineties,” he says.


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