Jump to content

Naspers

From Wikipedia, the free encyclopedia

Naspers Limited
Company typePublic
JSE:NPN
LSE:NPSN
IndustryInternet,E-commerce,fintech, food delivery
Founded12 May 1915;109 years ago(1915-05-12)
Headquarters
Cape Town
,
South Africa
Area served
Worldwide
Key people
Koos Bekker(Chair)[1]
Fabricio Bloisi(CEO)
Phuti Mahanyele-Dabengwa(CEO, South Africa)
RevenueIncreaseUS$22.1 billion(FY 2020)[2][3]
IncreaseUS$3.7 billion(FY 2020)[4]
Total assetsIncreaseUS$36.3 billion(FY 2020)[3]
Total equityIncreaseUS$29.93 billion(FY 2020)[3]
Owner
SubsidiariesProsus(56.92%)
Media24
Takealot.com
Naspers Foundry
Websitewww.naspers.com

Naspers Limitedis a South Africanmultinationalinternet,technologyand multimedia holding companyheadquarteredinCape Town,with interests in online retail, publishing andventure capitalinvestment. Naspers' principal shareholder is itsDutch listedinvestment subsidiaryProsus,which owns approximately 49% of its parent as part of across ownershipstructure.[5]

Founded in 1915 by attorney W. A. Hofmeyr, Naspers was the largest publishing company inSouth Africathroughout the 20th century with interests across newspapers, magazines and books. In the 1980s, the company began to diversify, launching a subscription television service and investing in markets outside of South Africa for the first time.

In 2001, Naspers made an early investment in Chinese technology firmTencentand became increasingly focused on the global consumer internet sector. In 2019, Naspers listed its global internet investment business unit Prosus (including a 31% stake in Tencent) on Euronext Amsterdam.

Naspers currently owns a 56.92% stake in Prosus[5]and wholly ownsMedia24(Africa's largest publishing company),Takealot.com(South Africa's largest online retailer) and Naspers Foundry, a South African focused venture capital fund.

History

[edit]

Founding and Afrikaner nationalism

[edit]

In 1914, eight years after the end of theSecond Boer Warwhich had devastated most of South Africa and left most Afrikaners impoverished and subject to theBritish Empire,a group of prominentCapeAfrikanersdecided at a meeting inStellenboschto form a publishing company that would supportAfrikaner nationalism[6]in theUnion of South Africa.[7]This meeting led to W. A. Hofmeyr, a well-known Cape lawyer andNational Partyorganizer; foundingDe Nasionale Pers Beperkt(National Press Ltd) in 1915 as a publisher of newspapers and magazines.[8][9]The firm's name was commonly shortened toNaspers(DeNasionalePersBeperk), the contraction eventually becoming used even by the company itself.

Naspers launched with the support ofJannie Marais,a prominent Stellenbosch farmer,[6]Jan Christiaan Smuts,Louis Botha,and National Party founding presidentJ.B.M. Hertzog.Naspers was strongly supportive of the National Party[10][11]and began publishing the Afrikaans-language dailyDe Burger(later renamedDie Burger) in June 1915, followed by its first magazine,De Huisgenoot(laterDie Huisgenoot) in 1916.[12]

Domestic expansion (1917–1986)

[edit]

In 1917, Naspers bought the weeklyBloemfontein-based Afrikaan newspaperHet Volksblad(nowVolksblad), the first expansion beyond the Cape Province for the company.[13]: 410 In 1925, Die Volksblad started publishing daily. In 1937, it startedDie Oosterligin the Eastern Cape.[13]: 410 Also in 1937,Nasionale Persset up the companyVoortrekkerpersin the Transvaal to support the National Party in Transvaal by publishingDie Transvaler.[13]: 411 Initially the Cape National Party tried to control the extremism of the National Party in the Transvaal by appointingHendrik Verwoerdas the paper's first editor but he would side with Transvaal branch andNationale Persgave up editorial control in 1939.[13]: 411 In order to combat the influence ofAlbert Hertzogin the Transvaal National Party,Nationale Persintroduced a more enlightened Sunday newspaper in 1965 in the province called theDie Beeldin competition to theDagbreek.[13]: 411 By 1970, these two papers, the latter owned byPerskor,to merge into a paper called theRapportmanaged by both groups.[13]: 411 In 1965, Naspers launched their first English-language magazineFairlady.In 1974, the Afrikaans newspaperBeeldbegan publishing daily for the Johannesburg market.[12]

Naspers entered the South African general and educational book publishing markets in 1918, initially publishing exclusively inAfrikaans.The company expanded to English-language titles in 1919 andXhosain 1922. Naspers spun off its book publishing operations in 1950 into a separate business,Nasionale Boekhandel.In 1963, Naspers recommenced educational publishing operations through subsidiary Nasou.[12]

In 1973, Naspers took back control of Nasionale Boekhandel, before acquiring another publishing house Human & Rousseau in 1977. Naspers continued to develop its book publishing business during the 1980s, forming the Afrikaans-language book club Leserskring in 1979 and the English-language book club Leisure Hour.[12]In 1986, Naspers acquired publisher JL van Schaik.

In 1984, Naspers acquired Drum Publications, publisher of the Sunday newspaperCity Pressand weekly magazinesDrumandTrue Love & Family,titles focused on a black readership.[12]

Diversification, IPO and international expansion (1986–2003)

[edit]

In 1986, Naspers formed a partnership with other South African publishing companies and launchedpay-TVserviceM-Net.[14]M-Net proved successful and, with sister companiesMultiChoiceandM-Web,steadily expanded its operations both in South Africa and internationally throughout the 1990s.

In 1994, Naspers became publicly listed on theJohannesburg Stock Exchangein South Africa.[15]The company also obtained a Level I American Depository Receipt listing on theLondon Stock Exchange.In 1998, the company formally changed its name to Naspers Limited.[12]

Naspers became increasingly focused on digital businesses; launching South African web portal Media24 and online retailer Kalahari.com in 1998 and Chinese-focused web portal SportCN in 2000. In May 2001, Naspers purchased 46.5 percent of Chinese internet companyTencent,owner ofWeChat,and an array of fintech apps and mobile games, from early investors includingPCCW(the owner ofNow TV) andIDG Capital.[16][17]The investment has been referred to as one of the most successful venture capital deals of all time.[18]Making Naspers the most valuable publicly traded business in Africa by 2017.[19]

In 2003, Naspers took full ownership of subscription television business M-Net and its sister companies MultiChoice and M-Web, integrating their extensive operations across Europe, Africa, Asia and the Middle East.[20]Naspers also launched new publishing ventures in Nigeria and Hungary in 2003.[12]

Online ventures (2003–2015)

[edit]

With the success of the investment in Tencent, Naspers became an investor in a number of consumer internet startups. In January 2007 Naspers purchased a 30% share of Russia's largest internet companyVK (company)(formerly Mail.ru Group) for $165 million.[21]

Naspers had a particular focus on India, investing more than $4 billion from 2014 to 2019,[22]across multiple sectors, including intoByjuandibibo.In December 2018, Naspers invested $1 billion into Indian online food ordering and delivery serviceSwiggy,[23]the largest single investment made, outside of China, into a food tech company.[24]

Consolidation (2015–present)

[edit]

In 2015, Naspers merged its South African–focused Kalahari.com online retail business with market leaderTakealot.com,acquiring a 46% stake in the merged company and creating South Africa's largest online retailer.[25]By 2018, Naspers owned 96% of Takealot.com.[25]

In December 2016, Naspers announced that it had entered into an agreement to sell telecommunications company M-Web toInternet Solutions(a subsidiary of Japanese telecommunications conglomerateNippon Telegraph and Telephone), pending approval by the South African competition authorities.[26][27]On 9 May 2017, it was announced that the South African competition authorities approved the proposed sale of M-Web, with 31 May 2017 being the effective commencement date.[28][29]

In March 2018 Naspers sold part of its stake in Tencent, raising some $10 billion to fund other investments. At the time, its initial investment of $32 million in Tencent was valued at over $175 billion.[30]

Naspers' video entertainment business was spun off asMultiChoice Group,on 27 February 2019, represented as MCG on theJohannesburg Stock Exchange.[31]Shares in Multichoice Group were unbundled to Naspers shareholders, with Naspers retaining no stake in the newly listed company.[32]

In 2019 Naspers listed its global internet investment business onEuronext AmsterdamasProsus,[33][34]which became Europe's largest consumer Internet company on its market debut. Share values gained over 25 percent on the day of itsIPO,with Prosus' market capitalisation exceeding 125 billion pounds (US$138 billion). Prosus reported profits of $4.2 billion for its fiscal year ending 31 March 2019.

Naspers Labs, designed in partnership with RLabs and its founder Marlon Parker,[35]launched in 2019 as an economic initiative for unemployed youth in South Africa.[36]

In May 2021, Naspers announced a share swap deal with its Dutch-listed subsidiary Prosus in an attempt to reduce the discount between the asset value of the companies and their market capitalisation.[37]The deal, successfully completed in August 2021, reduced Naspers' stake in Prosus to 56.92% and gave Prosus an approximately 49% share in its parent company.[5]

Following the2022 Russian invasion of Ukraine,Naspers (through its subsidiary Prosus) wrote off its 27.29% investment, previously valued at US$769 million, in the Russian internet companyVK.[38]

Controversies

[edit]

Apartheid

[edit]

Documents collected byOpenSecretsrevealed how Naspers funded theNational Party(NP) duringapartheid,and that the NP also held 74,000 shares in Naspers in 1984.[citation needed]

In a letter written toF.W. de Klerk,on 17 August 1989, Naspers' then managing director Ton Vosloo reaffirmed the company's support of the National Party. Vosloo reminded de Klerk of its donation of R150,000 (approximately R1-million today), made to the NP before the 1987 elections. The company had then also pledged a further R220,000 in support of the NP ahead of South Africa's last race-based general elections, in September 1989. Vosloo ended his letter, promising funding to the NP in Transvaal, by adding that "our newspaper Beeld in the Transvaal is your ally and we trust that this formidable combination will wipe out the competition."[39]

In 1997, theTruth and Reconciliation Commissionrequested that Naspers make a submission about the years between 1960 and 1994 (thus, broadly, between theSharpeville massacre,in March 1960, and the firstdemocratic electionsof April 1994), specifically, the media's role during this period. Naspers refused to comply, which led to 127 Naspers employees each making an individual submission to the TRC, apologising for their role in the apartheid years. They said Naspers newspapers had formed an integral part of the power structure which implemented and maintained apartheid through, for instance, supporting the NP in elections and referendums.[40][41]

In 2015, Media24 CEO Esmare Weideman issued a case-limited apology cited a single employee Conrad Sidego, who had experienced problems with separate facilities. She did not issue an unqualified apology for Naspers's role in supporting apartheid.[42]

Assets

[edit]

Naspers has two principal business units; Prosus & Naspers South Africa.

Prosus

[edit]

Prosus is the largest consumer internet company in Europe, and among the largest technology investors in the world, operating across a variety of platforms and geographies.[43]As part of a share swap deal announced in May 2021,[44]Prosus acquired a 49% stake in its parent company Naspers.[45]Other major holdings of Prosus include:

Prosus is also the largest shareholder of social Internet platforms:

Naspers South Africa

[edit]

Naspers South Africa operates three media, e-commerce & venture capital businesses in South Africa:

Media24

[edit]

Naspers wholly ownsMedia24,Africa's largest publisher, printer, and distributor of magazines and related products, as well its largest newspaper publisher.

Takealot.com

[edit]

Naspers wholly ownsTakealot.com,South Africa's largest online retailer.

Naspers Foundry

[edit]

Naspers Foundry is a South Africa-focused early stage venture capital fund that invests in firms that "address big societal needs". Naspers Foundry ceased investment operations in March 2023, though it maintained its existing investments.[50]

See also

[edit]

References

[edit]
  1. ^"About | Naspers".
  2. ^"Naspers Delivers Solid Results for the Twelve Months Ended 31 March 2020".Yahoo!.29 June 2020. Archived fromthe originalon 13 June 2021.Retrieved21 September2020.
  3. ^abc"Naspers Financial Statements 2020".Naspers. Archived fromthe originalon 13 June 2021.Retrieved21 September2020.
  4. ^"Naspers delivers solid results for the twelve months ended 31 March 2020".Naspers. Archived fromthe originalon 6 March 2021.Retrieved16 October2020.
  5. ^abcOmarjee, Lameez."Naspers-Prosus share swap done and dusted".News24.Archivedfrom the original on 18 August 2021.Retrieved18 August2021.
  6. ^abPretorius, Fransjohan (2014).A History of South Africa: From the Distant Past to the Present Day.Hatsfield, Pretoria: Protea Book House.ISBN978-1-86919-908-1.
  7. ^"Naspers Ltd. History".Funding Universe.Retrieved14 September2020.
  8. ^"Naspers website: Our history".Company history.Naspers. Archived fromthe originalon 20 March 2016.Retrieved15 March2015.
  9. ^"Apartheid Inc, the story of Naspers, Media24 and Channel Life".Media Alternatives. 15 November 2011.Retrieved15 March2015.
  10. ^Lizette, Rabe (17 July 2014)."From 'people's press' to global superstar".The Media Online.
  11. ^Lizette Rabe (17 July 2014)."From 'people's press' to global superstar".The Media Online.Retrieved14 September2020.
  12. ^abcdefg"Apartheid Inc. – Profile of a racist corporation, June 9, 2010".History Matters. 22 January 2015.Retrieved15 March2015.
  13. ^abcdefDavies, Rob; O'Meara, Dan; Dlamini, Sipho (1984).The Struggle for South Africa.Vol. 2. London: Zed Books.ISBN0862322561– via Internet Archive.
  14. ^Gundan, Farai."South African Billionaire And Media Tycoon, Koos Bekker To Step Down As CEO Of Naspers".Forbes.Retrieved31 May2020.
  15. ^"History of Naspers Ltd. – FundingUniverse".www.fundinguniverse.com.
  16. ^Patrick Boehler (21 February 2014)."South African media group struck gold by taking a chance on Tencent".scmp.com.South China Morning Post Publishers Ltd.Retrieved28 October2020.
  17. ^"A European Tech Giant Is Born, Spun Off From a South African Firm".The New York Times.11 September 2019.Retrieved28 October2020.
  18. ^"Tencent's 60,000% Runup Leads to One of the Biggest VC Payoffs Ever".Bloomberg Businessweek.22 March 2018.Retrieved16 September2020.
  19. ^"Koos Bekker to Naspers' shareholders: You're richer because of Tencent - BizNews.com".BizNews.com.28 August 2017. Archived fromthe originalon 4 February 2021.Retrieved29 August2017.
  20. ^"Naspers makes buy out offer".
  21. ^"African Naspers buys 30% stake in one of Russia's biggest internet portals".C-News. 24 January 2007. Archived fromthe originalon 26 December 2007.Retrieved5 June2007.
  22. ^Varsha Meghani (25 October 2019)."Inside Naspers' big bet on India".Forbes India.Retrieved18 September2020.
  23. ^Ganguly, Shreya (20 December 2018)."Foodtech Unicorn Swiggy Bags $1 Bn In Funding Round Led By Naspers".Inc42 media.Retrieved18 September2020.
  24. ^Russell, JonFood delivery startup Swiggy raises $1 billion more from Naspers, Tencent and others "Dec. 20, 2018. Techcrunch
  25. ^ab"Naspers bags all of Takealot".25 June 2018.
  26. ^"Internet Solutions agrees to buy MWeb Connect".ITWeb. 2 December 2016.Retrieved6 December2016.
  27. ^MyBroadband (2 December 2016)."MWEB to be sold to Internet Solutions".BusinessTech.Retrieved6 December2016.
  28. ^"Commission approves MWeb sale to DiData".ITWeb. 9 May 2017.Retrieved22 May2017.
  29. ^"Competition Commission approves Internet Solutions' acquisition of MWEB".MyBroadband. 9 May 2017.Retrieved22 May2017.
  30. ^"South Africa's Naspers cashes in $10bn Tencent stake".23 March 2018.Retrieved16 September2020.
  31. ^Naspers revenue soars on improved e-commerce business,BusinessTech, 21 June 2019,retrieved9 September2019
  32. ^"Naspers to list MultiChoice Group on the JSE – MyBroadband".
  33. ^de Wet, Phillip (26 August 2019),Naspers expects to pay R736 million to list Prosus in Amsterdam – here are the advisors and law firms that will benefit most,Business InsiderSouth Africa,retrieved9 September2019
  34. ^Michael J. de la Merced (11 September 2019)."A European Tech Giant Is Born, Spun Off From a South African Firm".The New York Times.Retrieved16 September2020.
  35. ^"Naspers appoints CEO for South Africa".BusinessTech.3 July 2019.Retrieved7 July2021.
  36. ^"7 things to know about the new CEO of Naspers SA".Fin24.3 July 2019.Retrieved20 September2020.
  37. ^Wexler, Alexandra."Tencent's Biggest Shareholder Looks to Fix Valuation Snag".Wall Street Journal.Retrieved16 July2021.
  38. ^abShapshak, Toby (16 March 2022)."OPINIONISTA: Naspers does the right thing by axing its Russian platform, but pays a R12bn price".Daily Maverick.Retrieved17 March2022.
  39. ^"Declassified: Apartheid profits – the tap root of the National Party".Daily Maverick.9 August 2017.Retrieved15 September2020.
  40. ^Rabe, Lizette (30 November 2017)."Chronicle of a coming of age? A media-historiographical revisit: The TRC, Naspers and Afrikaans journalism".litnet.co.za.Retrieved15 September2020.
  41. ^"NASPERS JOURNALISTS APOLOGISE FOR APARTHEID ROLE".www.justice.gov.za.Retrieved15 September2020.
  42. ^Etheridge, Jenna (25 July 2015)."Naspers apologises for its role in apartheid".news24.com.Retrieved15 September2020.
  43. ^Wexler, A. and Yang, J."Tencent's Biggest Investor Cashes In on Pandemic Rally" April 8, 2021.Wall Street Journal
  44. ^Cotterill, Joseph."Naspers launches share swap deal with Prosus to reduce impact of Tencent stake".Financial Times.Archivedfrom the original on 16 July 2021.Retrieved16 July2021.
  45. ^Sterling, Toby."Naspers, Prosus complete share swap, new cross-holding structure".MoneyWeb.Archivedfrom the original on 18 August 2021.Retrieved18 August2021.
  46. ^Singh, Manish (30 September 2020)."Prosus Ventures leads $13 million investment in Pakistan's ride-hailing giant Bykea".techcrunch.com.Retrieved30 September2020.
  47. ^Dummett, Ben (2 June 2021)."Stack Overflow Sold to Tech Giant Prosus for $1.8 Billion".Wall Street Journal.Retrieved2 June2021.
  48. ^"prosus 2022 annual report"(PDF).Retrieved25 September2023.
  49. ^"prosus2021-annual-report2"(PDF).Retrieved12 November2021.
  50. ^"Naspers shuts down R1.4bn SA-focused tech fund Foundry".
[edit]
Retrieved from "https://en.wikipedia.org/w/index.php?title=Naspers&oldid=1240179897"