Kagiso takes over MSN site

It will take full responsibility for marketing, sales and content on the site. It will also become the sole sales partner for all Microsoft's Windows Live properties - including Hotmail and Windows Live Messenger - in South Africa and sub-Saharan Africa. The new site will be officially launched in September, says Nevo Hadas, head of the group's convergence team, but readers will be able to notice changes from 1 July. Microsoft will continue to provide the systems, which run the portal and its advertising.

This will give both parties a greater slice of the South African online market, says Burak Gokmen, Microsoft's GM for its consumer and online activities in Middle East and Africa. "With Kagiso as a strategic partner, MSN South Africa will be focused on becoming South Africa's top portal," he says. "Our aim is to provide the best user experience for MSN users with rich content and easy integration with our Windows Live suite."

More engaging content

Kagiso Media's CEO, Murphy Morobe, said his company would be investing in enriching the user experience through more engaging content offerings. "We're always looking to excite our audience with great South African content, and provide advertisers with the right medium to engage with targeted audiences in South Africa. This deal furthers the group's digital media and convergence strategies."

Gokmen said the deal contains "significant growth opportunities". The parties have the option to extend the deal into the mobile space and into the Sub-Saharan African region for MSN portals.