A French broadcasting giant, Canal+, has decided to extend the deadline for finalizing its takeover of South Africa’s MultiChoice from April 8, 2025, to October 8, 2025. This extension aims to create a licensing company (LicenceCo) that adheres to South Africa’s foreign ownership laws, a crucial prerequisite for the deal’s approval.
Canal+ has been eyeing MultiChoice as a strategic entry point into Africa due to its presence in multiple countries. MultiChoice first drew Canal+’s interest in 2020 when Canal+ acquired a 6.5% stake in the pay-TV provider. Over time, this stake grew to 41.6% by April 2024, triggering a mandatory takeover offer under South African law. Canal+ proposed to purchase the remaining shares at R125 ($6.74) per share.
Initially expected to close by April 2025, the transaction faced regulatory challenges, especially concerning South Africa’s broadcasting ownership laws. The process was further complicated by Canal+’s separation from its former parent company, Vivendi, in December 2024, leading to its independent listing on the London Stock Exchange. Despite these obstacles, the extension demonstrates Canal+’s dedication to acquiring MultiChoice under its new corporate structure.
To comply with South African regulations, a new entity called LicenceCo will be set up to hold the country’s pay-TV license and oversee DStv subscribers. This entity will be controlled by South African stakeholders, including Phuthuma Nathi, Identity Partners, Itai Consortium, Afrifund Consortium, and a Workers’ Trust. Meanwhile, MultiChoice Group will transition from being a broadcaster to solely operating as a video content supplier.
The acquisition of MultiChoice is a strategic move for Canal+ to expand its presence in Africa’s rapidly growing media market. MultiChoice, being the largest pay-TV provider on the continent, will enhance Canal+’s position in both traditional and streaming services, enabling it to compete with global streaming giants and reach a target of 100 million subscribers.
The complete licensing and broadcasting takeover could lead to increased investment in local content, enhanced streaming options, and potentially more competitive pricing. However, Canal+’s operations in the region will be influenced by regulatory scrutiny and local content requirements.