Gateway Broadcast Services, the operator of GTV satellite service, has announced that its board of directors has unanimously approved a plan to liquidate the company. In a company statement, the current financial and global crisis has been blamed for severely hampering the Gateway’s ability to secure further funding for the continued operation of the business.
According to the statement issued, “Gateway Broadcast Services, suppliers of the GTV service to subscribers across Africa has over the last 2 years invested a total of US$200 million and created jobs and competition in the 22 markets. The economic crisis that has emerged globally over the last few months has caused excessive demands on the business. With immediate effect the service will be withdrawn.
“Increased instability in global markets interrupted our ability to secure funding on an acceptable timescale and has left us no choice but to cease operations. 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.”
GTV recently secured the contract to broadcast the English Premier League as well as several domestic leagues, including Ghana, Tanzania and Uganda. Uganda FA (FUFA) had a five-year contract worth $500,000 a year with Gateway.
The liquidation announcement was followed by the GTV channels going off air. The 7,000 odd subscribers received a brief message about the ‘blackout’.
