Vodacom is planning to sell a significant stake in Zoopy, a South African mobile video platform that produces short videos of the latest news, sports and entertainment. Zoopy is current wholly-owned and funded by Vodacom.
Details about the planned deal remain sketchy, but Vodacom confirmed that it is “looking at options for Zoopy that include bringing in a partner to invest and help grow the business”.
Vodacom said that it cannot comment in more detail about the planned deal and potential partners at this stage.
Zoopy was founded in March 2007 by Jason and Pat Elk, and at the time competed against platforms like YouTube by allowing users to upload and share videos, photos, podcasts and blogs.
Vodacom decided to invest in Zoopy, and purchased a 40% share stake in Zoopy in June 2008. The company increased its stake in the company to 75% in February 2009, and later acquired the remaining 25% stake in the company in August 2010.
The company has changed direction over the last few years, and is now a mobile platform producing original content using a team of content producers and news presenters.