Breaking: Primedia shutting down Prezence after unsuccessful sale attempt

email article email article print article print article tip @techmeme

Prezence

It is official, Prezence Digital will shut its doors come June. Primedia Group has announced today that the award-winning digital agency has ceased taking on new business and “will start winding down its operations with effect from 1 June 2014″.

Last month we reported that the group was looking to exit the business, which it bought from founder Tim Bishop, to a third party buyer. It seems the company has been unsuccessful.

According to a statement by the group it “was unable to conclude a suitable sale agreement that would adequately address the interests of all stakeholders, and as such has begun a structured shut down of operations.”

Primedia Group’s Commercial Executive, Geraint Crwys-Williams, says that the main priority for the company is to assist the staff through “this difficult process”.

“We will of course ensure that existing clients are not in any way compromised, and are working very closely with our Human Capital colleagues to assist all Prezence staff at this time. A large portion of the team will stay on for a further few months to ensure that we deliver on all of our client commitments in a professional and responsible manner.”

The group went on to say that a detailed review was done on Primedia’s assets and media platforms, which found that Prezence did not fit into the core offering of the media and entertainment group.

Established in the UK in 1998 by Bishop, Prezence Digital expanded into South Africa in 2002. The agency, which originally focused on the South African music and movie industries, evolved into the digital sphere with services such as mobile and web development, digital campaign management, social media and, more recently, apps. In 2005, Primedia acquired shares in the company and incorporated it into the Primedia digital group.

Some of the current staff will be leaving at the end of June but the bulk of the staff will stay until the end of August to wind things down with current clients. Our sources tell us that the staff will receive severance packages but we are not sure what the packages look like or the scale. Primedia has also not said if anyone from the Prezence team will be staying on in other roles within the group.

Announcing that it was looking to sell the company may not have been the best strategy for Primedia, this could have deterred potential buyers from the company and led to doubts about the business’ stability.

In 2012 Prezence Digital made headlines for its wildly successful MandelaStory campaign, with the endorsement of the Nelson Mandela Foundation, to celebrate Nelson Mandela’s 94th birthday. The campaign was featured on CNN, ITN and leading tech site Mashable.com.

email article email article print article print article

  • Ex Prezence client

    Horrible how both Prezence and Primedia handled this and treated their clients. Primedia threw some really good IT talent away – pity!

  • Anton Moulder

    Wow, this has felt really sudden. After being in business for so many years and producing some great work in the mobile space especially.

  • ex staff

    What a diabolical f-up! So difficult to see loyal, hard working people get completely shafted by a lack of planning, foresight and management at the highest level – all the way through to the top! And who suffers the most? Those who had faith and believed in what they did. Never has a lack of leadership been so apparent.

  • Hanna Alex

    hmmm nice thanks for sharing this informative article

  • http://www.iwishgroup.com/ Smartone

    Let the Agency war for Prezence clients begin…..

  • http://www.grenadeco.com/ Colin Daniels

    Yip. One man’s trash is another man’s…

  • Pingback: The Memeburn guide to the SA digital agency landscape | memeburn

Related articles

Topics for this article

[ advertising enquiries ]

Share
  • BURN MEDIA TV

    WATCH THE LATEST EPISODE NOW
    Latest Episode
    Unboxing the Blackberry Passport

MORE HEADLINES

news

VIEW MORE

interviews

VIEW MORE

future trends

VIEW MORE

entrepreneurship

VIEW MORE

social media

VIEW MORE

facebook

VIEW MORE

twitter

VIEW MORE

google

VIEW MORE

advertising & marketing

VIEW MORE

online media

VIEW MORE

design

VIEW MORE

mobile

VIEW MORE

More in News

KPCB latest report on digital trends: all the numbers you need to know

Read More »