MEDIA & INTERNET SERVICES

This sector comprises Naspers (NPN) and Prosus (PRX) (effectively one operation) and Multichoice.

 INDUSTRY EXPOSURES

Naspers and Prosus

Naspers/Prosus is building four segments aimed at dominating fast growing markets: Classifieds, Food delivery, Payments & Fintech, and Edtech, while maintaining its holding in Tencent. Key issues include:

  • Considering the importance of capital allocation for long-term ROI, how does leadership report on the progress and performance of its various ventures, and make decisions in terms of how capital is committed?

  • As each business achieves dominance, its exposure to marketplace behaviour increases dramatically, e.g. Tencent in China, where the CCP has imposed severe limits on gaming and music.

  • The re-emergence of global geopolitical competition between China and the US has implications for Naspers' companies, such as Tencent, particularly with the advance of AI and related technologies.

  • Companies in the Naspers stable are exposed to user privacy issues and the necessity to co-operate with authorities to maintain license to operate. T

  • Tencent's services provide it with the opportunity to collude with the CCP in surveilling the population and potentially manipulating citizen's behaviour in ways that infringe on civil liberties, if not actually violate human rights.

  • Complexity of share-swap deal with incentives for management, raises vulnerability for minority shareholders.

  • Cybersecurity poses a significant risk to all of Naspers' businesses, considering most of its products and digital assets are online and thus vulnerable to hacking and ransomware attacks.

  • Economic weakness caused Naspers to reduce its workforce in line with other global tech names, heightening risks to employee morale.

Multichoice

An entertainment company offering digital satellite TV services, including DStv, GOtv, and Showmax, providing sports, movies, news, and local content across Africa.  

Read this fascinating report with detailed analysis on these companies’ top ten material issues across:

  • Governance

  • Ethics

  • Customers

  • Labour 

  • Society

  • Environment

In this report

  • Naspers (NPN)

  • Prosus (PRU)

  • Multichoice 

Price: $475

Included:

  • Full 17-page report covering all 3 companies in the Media & Internet Services sector

  • Introductory in-person consultation, scheduled at your convenience; learn more about how to link FarSight scores with your valuation process, and get up-to-date answers to specifics on each company under coverage.