Ster-Kinekor, a subsidiary of Primedia, has sold the arm of the company responsible for the distribution of filmed content, games, and PlayStation hardware.
The Competition Commission approved the deal at the beginning of May, revealing that Ster-Kinekor Entertainment’s distribution business would be bought by two special purpose vehicles: Filmfinity and Gamefinity.
As the name suggests, Filmfinity will distribute filmed content in South Africa, mainly to movie theatre operators.
Gamefinity will take over the exclusive distribution partnership for PlayStation hardware and Sony Interactive Entertainment software in South Africa.
“The Commission found that the proposed transaction is unlikely to substantially prevent or lessen competition in any market. In addition, the proposed transaction does not raise any public interest concerns,” it said.
Listings at the Companies and Intellectual Property Commission (CIPC) reveals that Filmfinity and Gamefinity, both (Pty.) Ltd. companies, were registered on 7 March 2018 and have Mario Dos Santos and Carl Setzkorn as directors.
Dos Santos was the chief executive of Ster-Kinekor Entertainment, and Setzkorn was the chief financial officer.
Ster-Kinekor declined to comment on this story and directed all queries to Filmfinity and Gamefinity, specifically to Dos Santos.
Dos Santos forwarded requests for comment to Geraint Crwys-Williams, the group commercial, legal and human capital executive at Primedia Group.
Crwys-Williams confirmed that the sale went through at the end of May, after receiving approval from the Competition Commission.
“Ster-Kinekor Entertainment was a division of Primedia. Emanating from continuous strategy review processes Primedia concluded that the gaming and film distribution assets were non-core, and therefore that it would seek to dispose of those assets,” Crwys-Williams stated.
He declined to reveal how much Ster-Kinekor Entertainment was sold for, saying that the terms of the sale agreement made this information confidential.
However, he did confirm that Primedia holds no stake in either Filmfinity or Gamefinity.
While Filmfinity and Gamefinity did not comment on this article, they did post details to Facebook and Twitter on 19 July after changing the Ster-Kinekor Entertainment branding on its social media pages to “TeamFinity”, saying that it was business as usual at the company.
Responding to comments on Facebook, “TeamFinity” said that the only thing that has changed is that the business is no longer part of the Primedia group, hence the name change.
Primedia’s cinema division, Ster-Kinekor Theatres, remains as is.