As part of a R50 million plan to extend Johnnic e-Ventures` plans of horizontal expansion, the Internet arm of Johnnic has jointly signed a R12 million deal with print publication Sunday Times to acquire 30% of Sportal SA.
Sportal SA is part of the global network of sports portals which SA-born, London-based Rob Hersov established. Sportal SA operates Web sites such as Sarfu`s sarugby.net, certain Super 12 rugby team sites and various provincial sites.
eVentures and the Sunday Times will each acquire a 15% shareholding in Sportal SA. Sportal UK and listed sports management group Sail will retain the remaining 70% stake in the site.
The Sunday Times will provide promotional and advertising support off page and on its Web site to Sportal to drive traffic, while eVentures will provide cash and make Sportal the exclusive sports zone within the Ananzi search portal site.
Johnnic group CEO, Paul Edwards, says the Sportal deal is an important pillar in Johnnic`s online strategy.
"We are already a major player in various online categories, notably business, search, news and careers. Through our publications, we`re a major producer of sports news. This acquisition is a natural extension of our content offering.
"What is unique is that we are tying so-called 'new` and 'old` economy businesses into the same deal. The existing partnership between the Sunday Times and recruitment Web site CareerJunction has demonstrated how traditional media can be leveraged to support new media. The Sportal deal takes this to the next stage," says Edwards.
The deal fits in with e-Ventures` strategy of making Ananzi a zone rather than a search portal, this time leveraging off the local interest in sport and all things sporting
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