TopTV owner On Digital Media (ODM) is in talks with StarTimes over the sale of the struggling pay-TV firm.
Business Day reports the company, which has been in Business Rescue since November last year and recently mired in controversy over its bid to launch new porn channels, has been discussing a buyout with the Chinese pay-TV group for the last few months.
One potential problem is that South African regulations cap foreign ownership at 20 per cent.
HumanIPO reported yesterday the company had been forced to drop two of its channels, Top Movies +24 and Top Junior, as a turbulent six months went from bad to worse. It also dropped channels last year.
Though it initially sold 400,000 decoders shortly after its 2010 launch, the number of active TopTV subscribers is believed to have fallen markedly.
Buyout discussions have surrounded the company for some time now, though chief executive officer (CEO) Eddie Mbalo refused to comment on the latest reports. Shareholders in the company include the Industrial Development Corporation, the National Empowerment Fund and First National Media Holdings.
