TROUBLES IN the media sector seem to continue unabated.
Jimmy Manyi the owner of the media house, has staff and administrative to explain the decision to fold, that’s if he hasn’t already.
Reports are that advertising had dried up due to the Gupta scandals, and the provincial ads they once relied on were not enough to sustain the paper.
Today, the Public Investment Corporation started the process of withdrawing its investment in Independent Media -owners of The Star‚ Pretoria News‚ Cape Times and Durban’s Daily News.
PIC had 25% shares in the Independent News.
After the matter was shrouded in secrecy‚ it emerged in October 2016 that the PIC‚ the country’s biggest asset management firm that controls the pension savings of government employees‚ had invested nearly R1.3-billion in the Independent Media Group.
According to finance minister Nhlanhla Nene: “In line with the terms and conditions of the transaction‚ the Public Investment Corporation (PIC) is working on an exit strategy in respect of its investment in Independent Media‚” said Nene.
“However‚ due to the sensitive nature of the information‚ the details of this strategy cannot be publicly disclosed‚” he added.
Nene was responding to a written question from DA MP Alf Lees on Wednesday.
The media group is owned by businessman Dr Iqbal Survé.
This is alarming because the move amounts to staff redundancy as the economy gets tougher everyday.
If established media houses are facing the pinch, what about emerging ones?
Question is, which media house is next to face the same fate?