Monday, April 29, 2013

Dynamic TV makes a bid for On Digital Media (ODM) and its TopTV pay-TV service, with Dynamic TV backed by a loan from MultiChoice.

MultiChoice which operates the DStv satellite pay-TV platform, is giving R500 million in financial backing in the form of a possible loan to Dynamic TV, the new consortium of MSG Afrika and Falk Trading, which launched a last-minute bid to bail-out MultiChoice's pay-TV rival in South Africa, the struggling On Digital Media (ODM) running the TopTV pay-TV platform hovering on the brink of liquidation.

Dynamic TV brought a last-minute offer to ODM's business rescue practitioner which means that Dynamic TV's offer will have to be entertained by ODM's shareholders who are set to vote tomorrow, Tuesday over the offer from China's StarTimes which put a deal on the table to flush TopTV with hundreds of millions in new cash.

As I've reported, Given Mkhari of MSG Afrika and Malose Kekana of Falk Trading are behind the new consortium trying to become TopTV's new capital investment partner.

The interesting thing is that Dynamic TV approached MultiChoice - actually ODM's rival - for development support. If Dynamic TV's offer is accepted above that of China's StarTimes, it actually means in a sense that MultiChoice is "investing" in its competition TopTV.

"The Dynamic TV consortium has the capacity, expertise, support, know-how and committment to turn around the business of On Digital Media," says Dynamic TV.

ALSO READ: StarTimes' business rescue plan and drastic overhaul proposals it has for TopTV.

"Dynamic TV consortium's approach to the business rescue of ODM is informed by the strategic desire to promote a successful South African business, to support local manufacturers, distributors and installers, and to stimulate the independent production of locally developed, home-grown African content," says Dynamic TV.

"Having analysed On Digital Media and the market, Dynamic TV believes there is a gap for another viable pay-TV operator. The business rescue plan is designed to be implemented in a way that promotes the developmental objectives of South Africa," says Dynamic TV.