Saturday, January 31, 2009

Bad news for cable TV in Africa as GTV folds......

Gateway Broadcast Services Board of Directors has unanimously approved a plan to liquidate the Company.

The current financial and global crisis has severely interrupted the company’s ability to secure further funding for the continued operation of the business.

The company has worked extensively with external advisors and all internal resources to investigate, evaluate and analyze strategic alternatives for the Company to further continue to operate. In determining to approve the Company's plan of Liquidation, the board and management carefully reviewed the advice and findings.

Gateway Broadcast Services, suppliers of the GTV service to subscribers across Africa has over the last 2 years invested a total of US$200 million and created jobs and competition in the 22 markets. The economic crisis that has emerged globally over the last few months has caused excessive demands on the business.

With immediate effect the service will be withdrawn.

“Increased instability in global markets interrupted our ability to secure funding on an acceptable timescale and have left us no choice but to cease operations,” said a company spokesman.

“We realise the negative impact this has had on our loyal customers, creditors and staff, all of who have believed in GTV and the revolution in pay TV it had created. We have tried every possible step to keep the company going but we are all the unfortunate victims of the current global economic crisis.”

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