According to widespread South African media reports, technology firm Dimension Data and media conglomerate Naspers have staged talks regarding a potential merger between their respective broadband units, MWEB and Internet Solutions (IS). Despite denials from executives at both companies, it has been suggested that a deal is in the pipeline that will see Naspers take a 20% stake in the joint venture.
According to TeleGeography’s GlobalComms Database, MWEB is a one of South Africa’s largest retail broadband providers, with a 25.2% market share at 30 September 2013, while IS is a major player in the wholesale markets, suggesting the possibility of substantial operational synergies.