The media and marketing sector is closely watching as private equity investors consider exiting their investment in Primedia Group.
by Charles Lee Mathews. Bloomberg recently revealed that Primedia’s shareholders are exploring strategic options, including a possible sale that could value the company between $350 to $500 million. “The potential sale of Primedia’s stake signals a shift in ownership dynamics, which may open up opportunities for new partnerships,” says Garreth van Vuuren, founder and CEO of RAPT Creative. “If new investors bring fresh perspectives, it could enhance Primedia’s market position, particularly if they lean into the growing African media landscape.”
Founded in 1994 and listed on the JSE in 1995, Primedia operates across several African countries, including South Africa, Nigeria, Kenya, Ghana, and Zimbabwe. The group’s broadcasting portfolio includes radio stations Cape Talk, 702, KFM, and 947, alongside the news brand EWN. Additionally, Primedia owns out-of-home media solution Primedia Outdoor and retail media business Primedia Instore.
Market tuned in to Primedia
Van Vuuren anticipates that media agencies will closely monitor the situation. “Agencies may be cautious about entering long-term agreements until there’s clarity on the new owner’s strategic direction.” However, he emphasizes Primedia’s strengths, stating, “Primedia’s focus on local content speaks to an understanding of the unique South African market, which can only strengthen relationships with agencies looking for media partners that resonate with local audiences. Its investment into local content already sets it apart as a media entity committed to cultural relevance and consumer connection.”
“Primedia has always been a market leader and innovative in its approach, so with the right investor, this will further enhance their standing and perception. If the investor is a global media company there could be very positive implications,” says Martin MacGregor, founder and CEO of Connect, part of the Up&Up Group (formerly M&C Saatchi SA Group).
MacGregor says media agencies will perceive the sale positively if it results in more media brands joining the group. “Primedia has a strong track record in building strong media brands and has a very professional sales teams,” MacGregor adds.
Competition from multinational giants
“One of the biggest issues that media companies in South Africa face is that they are up against giants like Google and Meta,” says Amanda Louw Bester, founder of Pragmattica. “Brands are more interested in dealing with these giants because it is so much easier for them to run online ad campaigns on the two US technology conglomerates because they offer self-service advertising solutions. Primedia needs to focus on making it easier for brands and media agencies to buy inventory to remain relevant in the long term.” She adds that Primedia should concentrate on monetising its products and the group’s digital transformation*.
The potential divestment may actually be a positive sign, according to Kagiso Musi, group managing director of Meta Media: The investors are likely divesting because there are good returns to be had. Primedia is very progressive. The media group is brave and has gone into the content side in a way that shows a strong understanding of the business,” says Musi. Primedia secured the rights for “Deal or No Deal” and “The Masked Singer South Africa” Musi adds.
In 2024, the company created Primedia Studios to boost the group’s capacity to create content and distribute it throughout Africa. Primedia also sells programming to streaming services such as Netflix and Apple+.
Strategic innovation
“At Primedia Studios, we are redefining content by seamlessly integrating it across platforms, ensuring that our narratives resonate deeply with audiences, no matter where they engage with our brand. This is the essence of our 360-degree approach,” says Lindiwe Hani, head of marketing at Primedia Studios.
“They’re not trying to be a television broadcaster, even though they’ve bought these properties. I don’t necessarily believe that all of their solutions are perfect, but they are brave and forward-looking and that’s what matters. I’m always excited to speak to the group’s sales team to see what they’re up to,” Musi says.
“The sale could be a turning point for Primedia to invest heavily in digital transformation, complementing its local content strategy. By enhancing their offering to advertisers and audiences through more digital solutions, they could position themselves strongly against competitors who have already diversified. The ability to integrate local content seamlessly into a digital strategy will play a key role in future growth,” van Vuuren adds.
“We should always celebrate the successful growth and performance of our local companies. We consistently build world-class companies in SA, and investors should be rewarded with strong exits,” says Jonty Fisher, senior vice president of Publicis Groupe Africa.
Offshore interest In African media
Primedia Group is owned by EPE Capital Partners, Old Mutual, FirstRand, and the Mineworkers Investment Trust. Bloomberg reports that there’s been growing interest in Africa’s broadcasting firms. Earlier this year France’s Canal+ initiated an acquisition of the MultiChoice Group Ltd. This deal is currently pending approval from local regulators.
“With the increased foreign interest in South African media companies, particularly in broadcast, we have to stay guarded on the independence of South African news sources. The power of global media in swaying opinions and attitudes in this more polarised world is obvious, and as Canal+ moves to buy Multichoice, and other deals in the works, we must keep our local voices strong,” says Fisher.
He says a red flag is a monopolistic aggregation in the broader media industry. “This would depend on who the Primedia buyer would be, but with a diversified portfolio across broadcast, OOH and content studios, this adds a lot of supply control to a strategic buyer,” Fisher explains.
- Sentence shortened on 2024/10/17
Charles Lee Mathews is a contributing writer to MarkLives MEDIA and MarkLives as well as co-founder of The Writers, a writing consultancy.
