New Partner for Acceleration Media

Acceleration Group have sold their media division, “Acceleration Media” to Kagiso Media and Lagardère Active Radio International (LARI) for an undisclosed amount.
Acceleration Media is one of the leaders in the South African online media with a profitable track record and great knowledge, so the deal makes sense for the buyers that wanted to diversify into digital media. What was a company like Kasigo – that owns lots of radio stations but no sites – supposed to do to enter the market? Yes, the answer is “buy someone”.
Another reason why I think this is going to be a good deal is because Acceleration Media and Acceleration Group were heading into different strategic directions. It’s not good business to follow two different paths, they knew it and sold.
However there are a few concerns because it will be interesting to see how Acceleration will continue with the current business model now that they are owned by a media owner? It’s interesting to note Kagiso Media’s RadMark venture which they use to sell adspace to all their radio stations. Will they apply the same principle with Accelaration Cape Town?
How do you feel about it? Here is the press release.