MWEB up for grabs

Just got this mail from them:

Dear MWEB Customer
After more than ten years in this industry, the MWEB group is rightfully proud of its position in the market. In South Africa alone we have more than 320 000 subscribers and a reputation for superior customer service for both residential and business internet users. We are leaders on the continent in rolling out new technologies such as WiMax and VSAT and today we are represented in more than 26 countries on the African continent. This has all culminated in the MWEB group becoming the leading Internet Service Provider (ISP) in Africa, something we could not have achieved without your continued loyalty.

South Africa and the rest of the continent is experiencing interesting times as the rapid pace of broadband deployment continues unabated. Against this background, Naspers has recently been approached by several interested parties to acquire MWEB and MWEB Africa. These interested parties believe that the market opportunities are ideal to grow MWEB further. We have embarked on a process to consider these offers but please be assured that it will not change how we conduct our daily business.

What does this mean to you as a subscriber?

Your email address will not change;
Our existing suite of products and services, and prices, will remain unchanged;
It is business as usual in every aspect of each division in MWEB;
We will continue to innovate and deliver new products to market, at competitive prices, with the best-of-breed technology to suit your particular needs.
We are really looking forward to sharing our exciting new future with you.

Yours sincerely
Rudi Jansen
CEO

 
I wonder what Naspers' strategy is ... they appear to be entrenching themselves as a major media mogul (even buying companies in India and Poland) so one would have thought MWEB would be great for leveraging services like IPTV or video on demand :confused:

Maybe they don't want to concentrate too much on the South Africa market and they're looking for capital to invest more heavily in other emerging markets.

Can't figure out why they would offload MWEB when there are great synergies to be made with the ISP and their other local businesses?
 
I think in the long run NASPERS reckon it will be better for them... money-wise.

No doubt the bid offers will be quite large... considering what they paid for Tiscali, these offers may be up to 3-4 times more... and they will get bucket-loads of offers for MWEB and most likely even enough $$$'s to buy a stake in yet another company, more in line with what they are about.

As we all know, the ISP business in SA is a very tough and competitive market, the profit margins are low and not as high as in a market where you are the sole provider, like what NASPERS is in the Online Media and Print markets.

It's all about the bottom line I reckon. $$$

I am also of the viewpoint that if NASPERS invested properly into MWEB and really put their capitalist money coffers behind MWEB, then MWEB would have stomped the other competitors into the ground.
 
So who wants to buy the most over-priced ISP out there. Any volunteers/victims?
 
as long as it will not affect my service/email etc from them (except a price drop) it's ok i guess
 
Well.. I think it is Vodacom Business that is buying:

Who has enough muscle to do this? Who has the will to break into this space at a high premium?

It would make a lot of sense. MWEB is not sure of WiMax spectrum - but Vodacom Business through WBS is. So the value of the MWEB business increase just because Vodacom owns it.

If MWEB does get the WiMax spectrum from Icasa it is also in Vodacom's favor - because nobody seems to have enough WiMax spectrum for full speed service.

Furthermore - a deal with Vodacom can have advantages other than monetary.I don't think Vodacom wants to become a media company and I think Naspers doesn't really want to be a telecommunication company. Vodacom is already reselling DStv. So a deal with Naspers can mean they will be able to offer full triple-play services between the two companies, and still focus on what they do best.

I know Vodacom Business said they will grow organically - but I am pretty sure if they can make a long-term deal with Naspers they will.
 
Yes, Vodacom does look like a strong contender. I would include Vodafone in this bracket as well.
Especially with MTN winning the Verizon deal.

It would be ironic though (if not downright funny), if it turns out to be Vodacom... seeing as they tried their hand at being / running an ISP before...

Maybe Vodacom feels they have grown up since then.
 
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