StockTalk Retrospective. Story of success #1. Naspers.

A remarkable transformation – from newspaper publishing to a modern internet giant.

Naspers is a company with a remarkable history lasting over 100 years.
The company was founded in 1910 and produced printed materials, including newspapers and magazines. This continued for 80 years until it began providing cable television services. With the advent of the internet, Naspers became directly interested in this area. A key deal for Naspers was the acquisition of 46.5% of the then relatively little-known Tencent. This investment determined the company's entire future. At the time, the deal attracted little attention. In hindsight, it became one of the most successful venture investments in history.

Tencent grew into one of the world’s largest technology companies, and Naspers’ stake became the dominant driver of its valuation.This raises an important question: Was Naspers’ success the result of visionary strategy or one extremely lucky investment? - The answer likely lies somewhere in between. While the Tencent investment created enormous value, Naspers also demonstrated the ability to identify long-term technological trends and act decisively at an early stage.

Building a global internet portfolio

Following the Tencent success, Naspers accelerated its expansion into global internet markets. The company built a diverse portfolio across multiple sectors:

• E-commerce and marketplaces (OLX, Allegro, Avito)
• Fintech and payments (PayU)
• Food delivery (iFood, Delivery Hero via Prosus)
• EdTech and other digital platforms

Today, most of these assets are held via Prosus, Naspers’ Amsterdam-listed subsidiary, created in 2019 to manage international investments and reduce structural inefficiencies.This evolution transformed Naspers from a regional media company into one of the largest technology investors in the world.

Do you know many companies in the world that have managed to grow from newspaper production to the owners of major online projects, not just media outlets? In fact, there are no other examples like this. It's surprising that it was a South African company, not an American or German one, that managed to achieve this.

Naspers nowadays and in the future

Naspers price chart, May 2026

In November 2025, the company's shares peaked at R1,261.79. However, a rapid decline and downward trend followed. The stock has fallen -23.87% YTD and -15,29% Y/Y, representing more than just a price correction.There are several structural factors to explain it:

1. Persistent discount to Net Asset Value (NAV)

Naspers and Prosus both trade at a significant discount to the value of their underlying assets (up to ~30–35%). This reflects investor skepticism and the complexity of the corporate structure.

2. Overdependence on Tencent

A substantial portion of Naspers’ value still comes from its Tencent stake (roughly 70–80%).
This creates concentration risk of regulatory pressure in China, geopolitical tensions.

3. Complex corporate structure (Naspers → Prosus)

The layered structure continues to confuse investors and contributes to undervaluation. Even after efforts to simplify it (e.g., removing the cross-holding structure in 2023), the perception of complexity remains a key issue.

4. Capital allocation concerns

Historically, Naspers has faced criticism regarding:

• Aggressive acquisitions,
• Capital allocation efficiency,
• Governance decisions

These concerns still influence investor sentiment.

5. Global macro environment

Higher interest rates and weaker sentiment toward emerging markets and Chinese tech have also weighed on the stock. Nevertheless, given Napers' history and its resilience in the face of dramatic market changes, we are confident that the company will experience new ups and new prospects in the future. This is supported not only by words, but also by history and the assessment of today's analysts, strived bullish. Their voice: "Naspers is a "Strong Buy" for sure".

Conclusion: more than just one lucky deal?

So, is Naspers simply a story of one lucky investment? Not exactly. While the Tencent deal undeniably shaped its trajectory, Naspers’ success also reflects:

• Strategic adaptability
• Early recognition of digital trends
• Ability to operate globally from an emerging market base

Few companies in the world have managed such a transformation from a local newspaper publisher to a global tech investor. And perhaps that is the most remarkable part of the story.