Johannesburg - Multichoice has implemented sweeping changes to its management line-up that suggest the largest pay-television broadcaster in South Africa is fine-tuning its strategy for a tougher competitive environment ahead.
A consequence of the restructuring was that long-serving chief executive of MultiChoice South Africa Collins Khumalo would step down to “take time out”, the firm said. His position would not be filled. Instead the division would report directly to Imtiaz Patel, the group chief executive, in future.
The company, which is an indirect subsidiary of JSE-listed media group Naspers, had appointed Mark Rayner, the head of DStv Mobile, to the position of chief operating officer of MultiChoice South Africa with immediate effect, “in view of the increasing complexity of the MultiChoice business”, it said. MultiChoice had 4.5 million subscribers by year-end in March.
The mobile function was added to the portfolio of John Kotsaftis, who will become chief executive of both DStv Online and DStv Mobile under a combined business unit.
MultiChoice also appointed Calvo Mawela to head stakeholder and regulatory affairs for the MultiChoice South Africa group. He will report directly to Patel.
The realignment follows recent reshuffling on the Naspers board to realign the board with the strategic focus of the underlying businesses, according to Abdul Davids, the head of research at Kagiso Asset Management.
“The MultiChoice business comprises not only the SA and Africa pay-TV business, but also houses the investment in Tencent and thus accounts for the bulk of Naspers value,” Davids added. Tencent, in which Naspers holds a 34 percent stake, is China’s largest social networking site.
Late last week Indian media reported that Tencent and Naspers had restructured their partnership in India to allow Tencent to operate social businesses in the sub-continent and Naspers to focus on e-commerce through its subsidiary MIH India. Tencent holds nearly 20 percent of MIH India Global, while Naspers-controlled MIH owns 80.1 percent of the entity.
According to new agreements Tencent will own the bulk of the social business and Naspers will hold the majority of the e-commerce venture. - Business Report