Hidden in the big black box

THERE'S AN INDUSTRY BUZZ about the possible outcome of Naspers's sale of MWeb. The most likely bidders seem to be Altech and Vodacom Business, although all who have expressed an interest have their lips sealed, as they'll have been privy to confidential documents to help them make up their minds.

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Naspers first announced on 2 June that MWeb would no longer fit in with its strategic direction and that it would be sold. But surely if you have a great asset that's been cultivated into a market leader over a number of years (since 1997) and it holds such great potential, why sell it?

Jansen says Naspers's vision is to invest in online properties that attract their users from anywhere, whereas MWeb wants those users to come via its Internet service provider (ISP). That means there's a serious "divergence" of strategy. "To grow MWeb you really do have to sell it," he says.

On the valuation front, few think Naspers will get the R2,5bn the market believes it wants for MWeb. Particularly not if rolling out a WiMax network means it won't make money for at least the following three years. However, if someone wants to be a converged telco player badly enough, perhaps it will pay up.

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dominic said:

why sell it? because the Minister and ICASA have collectively screwed your business plans? because you are unlikely to get access to any decent portion of WiMax spectrum in the next 12 months by which time the continued relevance of the tech may be in serious doubt? because you have seen the future and the future is greater govt involvement in electronic communications infrastructure? because you want to be a telco but have come to realise that by the time you are allowed to arrive at your destination the big boys will have eaten all the sweets?

mr jansen is no fool and die groot baas mnr bekker is probably one of the most astute businesspeeps in SA - i am quite sure they can read some of the writing on the wall -

Meanie, Meanie, Telkom u-Farce-in [or something like that]

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dominic said:

why sell it? because the Minister and ICASA have collectively screwed your business plans? because you are unlikely to get access to any decent portion of WiMax spectrum in the next 12 months by which time the continued relevance of the tech may be in serious doubt? because you have seen the future and the future is greater govt involvement in electronic communications infrastructure? because you want to be a telco but have come to realise that by the time you are allowed to arrive at your destination the big boys will have eaten all the sweets?

mr jansen is no fool and die groot baas mnr bekker is probably one of the most astute businesspeeps in SA - i am quite sure they can read some of the writing on the wall -

Meanie, Meanie, Telkom u-Farce-in [or something like that]

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dominic said:

Meanie, Meanie, Telkom Oh-Fsck-You [or something like that]

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