GTV succumbs to global financial crisis

2 Feb 2009

LONDON: Gateway Broadcast Services announced late last week that its board of directors has unanimously approved a plan to liquidate the company. According to a statment released, the current financial and global crisis has severely interrupted the company's ability to secure further funding for the continued operation of the business.

Gateway Broadcast Services supplied programmes under GTV to countries across Africa. GTV broadcast the English Premier League as well as several domestic leagues, including Ghana, Tanzania and Uganda. Football federations and leagues in Africa, including Uganda FA (FUFA) will feel the effects of the liquidation. FUFA had a five-year contract worth $500,000 a year with the company. GTV were sponsors of the CECAFA Cup and were sponsors of domestic leagues in Ghana, Tanzania and Uganda.

Television services have been stopped immediately with subscribers receiving a short message telling them the channel is off the air. 45 permanent employees of GTV Uganda lost their jobs instantly, along with 7,000 subscribers being affected.

According to the statement, "The company has worked extensively with external advisors and all internal resources to investigate, evaluate and analyse 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."

GTV was in operation for the past two years investing a total of US$200 million and creating jobs and competition in the 22 markets. The economic crisis however has taken its toll and "has caused excessive demands on the business."

“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."