Johncom cleared to buy ‘The Sowetan’

JOHANNESBURG – Johnnic Communications (Johncom) said on Friday South Africa’s Competition Tribunal had cleared it to buy the owner of tabloid newspaper The Sowetan, a move it hopes will boost advertising revenues and trim costs.

Johncom bought New Africa Publications from New Africa Investments Ltd (NAIL) for an undisclosed sum in February. It also agreed to buy from NAIL the 50 percent of the Sunday World newspaper it does not already own.”The Commission concluded that the acquisition did not give rise to any competition concerns and recommended that the Tribunal approve the transaction,” Johncom said in a statement.Johncom CEO Connie Molusi said the acquisition would allow his firm to start working on a strategy for the paper.At its peak a few years ago, The Sowetan had a circulation of well over 200,000 copies a day and a readership of some 2 million.But a change in editorial direction – trying to take the paper more upmarket – and the launch of rival tabloid, the Daily Sun, slashed its circulation by some 100,000.The Daily Sun is owned by Naspers.Johncom hopes to achieve critical mass by buying The Sowetan so that it can attract more retail advertisers and score efficiencies in back office operations.Analysts broadly welcomed the deal when it was announced in February.Johncom’s other newspaper titles include Business Day, The Daily Dispatch and The Herald.- Nampa-ReutersIt also agreed to buy from NAIL the 50 percent of the Sunday World newspaper it does not already own.”The Commission concluded that the acquisition did not give rise to any competition concerns and recommended that the Tribunal approve the transaction,” Johncom said in a statement.Johncom CEO Connie Molusi said the acquisition would allow his firm to start working on a strategy for the paper.At its peak a few years ago, The Sowetan had a circulation of well over 200,000 copies a day and a readership of some 2 million.But a change in editorial direction – trying to take the paper more upmarket – and the launch of rival tabloid, the Daily Sun, slashed its circulation by some 100,000.The Daily Sun is owned by Naspers.Johncom hopes to achieve critical mass by buying The Sowetan so that it can attract more retail advertisers and score efficiencies in back office operations.Analysts broadly welcomed the deal when it was announced in February.Johncom’s other newspaper titles include Business Day, The Daily Dispatch and The Herald.- Nampa-Reuters