The highly anticipated merger deal between MediaMax’ K24 and Standard Media Group’s KTN News has flopped. This is according to emerging reports.
The reports say that the deal has gone asunder after MediaMax resolved to hire a fresh team of employees to give a new lease of life to its moribund television station. It is expected that this team will be hired on a salary package that the company can afford. This follows the exit of highly paid anchors such as Betty Kyalo who led a protest against a fifty per cent salary cut last month.
“In its new strategy, K24 TV will hire three female and three male anchors. Editors, producers, directors, camera teams will also be put in place to facilitate the media station’s new direction in terms of content. K24 is also said to have introduced a lot of new entertainment content since June 1, 2020, to remain competitive. Mediamax is also looking at heavy investment in radio stations for the Luo and Kamba audience as well as it’s print and digital platforms,” said one of the reports.
In May this year, Bizna Kenya reported that MediaMax had entered into negotiations that would see it stream news from KTN News. The media house was also planning to shut down its vernacular television station Kameme TV after the station’s failure to break even. MediaMax is owned by the Kenyatta family.
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“Mediamax Network Limited regrets to advise; that owing to the ongoing Covid-19 pandemic that has adverse effects on its revenue streams, it shall reorganize its staff structure and abolish some positions as part of its cost optimization measures in the wake of its new business realities,” a statement from Mediamax chief executive officer Ken Ngaruiya announced on May 21. “In line with the current HR policies, Mediamax Network Limited shall give the employees declared redundant one month’s notice. Alternatively, Mediamax may pay them one month’s salary in lieu of notice and pay a severance pay at the rate of 15 days’ pay for each year of severance.”