Tiso BlackStar Group, the parent company of Times Media Group (TMG), that recently bought a stake in Multimedia Broadcasting Company, owners of JOY FM, has announced it is looking to invest in Ghana’s digital space.
The drive is informed by a company decision to either start or acquire media properties in Ghana and some other African countries including Kenya, and Nigeria.
Tiso has cited declining advertising spend on its existing conventional properties in print and wants to branch into the more welcoming digital ecosystem.
“There are too many titles competing for declining advertising spend and unless there is a conscious effort to consolidate, there may be significant failures. Many titles in South Africa are marginal and will struggle to survive further declines without fundamental change,” the company said recently.
“A number of tough choices need to be made in our media division in the face of declining advertising revenues, especially from government, and in line with international trends. We are also looking at a range of new revenue streams, some of which are already delivering earnings.”
It further told shareholders that it was intent on becoming a “single sector company, focused on media” resulting in some assets becoming “non-core”.
“Each opportunity will be considered in terms of whether Tiso Blackstar can add value by leveraging off its existing asset base whether it meets an acceptable risk return profile, whether it has a coherent and achievable strategy, and whether the acquired opportunity can be leveraged to benefit the existing asset base.”
If the Ghana investment decision is taken, it will be an addition to the Johannesburg Stock Exchange (JSE)-listed media company’s interest in Ghana.
In 2013, it acquired a 32.26 percent stake in the Multimedia Group for some 144 million Rands as part of a continuation of its strategy to invest in quality media firms in Africa.