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Egyptian tycoon Sawiris sold ONTV over lack of profits, will invest heavily in advertisement

Ahram Online , Tuesday 17 May 2016
Egypt
Egypt's business tycoon Naguib Sawiris (Photo: Al Ahram)
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Views: 3131

Business tycoon Naguib Sawiris said Tuesday that the sale of satellite TV channel ONTV resulted from failed attempts to turn the channel into a lucrative investment, adding that he still intends to invest heavily in TV advertisement through his company Promomedia.

Sawiris sold ONTV Sunday to high-profile businessman Ahmed Abu Hashima, whose company Egyptians' Media bought the channel in a bid to "pump investment into domestic media."

The former owner said in a statement Tuesday on ONA, a private news agency affiliated to ONTV, that ONTV's programming focuses on coverage of news and current events, which according to Sawiris "cannot make profits in the Egyptian market."

He clarified that in order to make a profitable TV network, content has to include lighter material, such as drama, film and life style programming.

"This requires heavy investments to establish such a comprehensive network," said Sawiris, who clarified in the statement that he is not ready to invest in that direction.

Instead, Sawiris explained that his plan is to invest in the field of advertising rights and media production that will include films, television series and programmes through Promomedia.

He said he has already gave the thumbs up to increase the company's capital to EGP 500 million, and will be in charge of its boards of directors.

"Selling ONTV removed any suspicions over a conflict of interest for owning a TV channel and advertisement rights for another channel, which will open the door for us to cooperate with all channels," Sawiris said.

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Pelleston
18-05-2016 02:43pm
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Media business
Egypt is a great place for investment in any sort of media. They make the best( and most definitely the funniest) movies in the MIddle East. If Adel Imams movies were subtitled they would sell anywhere in the world.i You need some new talent in the ad department though, most of the ads are terrible.
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Sam Enslow
18-05-2016 09:17am
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Pay heed!
Mr. Sawiris is a businessman and investor. He knows Egypt and its economy and is not afraid of a fight. The broadcast media is often considered a licence to print money. If business conditions in Egypt are such he cannot make a profit, this should be a warning to the government that reforms must be made. The new venture can serve an international market. There are many who see investment opportunities in Egypt, both large and small, but government policies and corruption combined with red tape make the risks too great. There are better opportunities elsewhere. Starting a new business is hard enough, challenging enough. Fun and games, unclear or unstable laws, delayed judicial rulings, political interference, and all the other problems, knownto most Egyptians, make long term investments iimpossible. Long term investments build Egypt's economy and employees people, people who will no longer need subsidies.They will have real salaries. Save Egypt - not failed State industries.
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Al
17-05-2016 04:37pm
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Invest in the field of advertising ...
Nothing wrong with that, however in a developing country with more pressing needs for basic industries and infrastructure; wouldn't this benefit more job seekers and economic development further? If successful Egyptian business people won't lead by example and tackle the county's critical sectors how can we convince foreign investors to take the risk! Just wondering!!
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