broadcastingcompany Canal+ successfully overcomes the last obstacle in the process of acquiring MultiChoice, Africa's leading pay-TV service provider.
Canal+ Acquires MultiChoice Group: A Game-Changer for African Media Landscape
In a move set to reshape the African media landscape, the South African Competition Tribunal has approved the acquisition of MultiChoice Group by Canal+. This merger, expected to be finalized before October 8, will consolidate two major pay-TV and streaming entities under one roof, creating the continent’s largest pay-TV and streaming business.
Impact on African Media Landscape
The consolidation of these two entities will position the combined entity as a dominant media and entertainment champion centred on Africa. With Canal+ already owning over one-third of MultiChoice, the acquisition will see the French media giant acquiring up to 100% of the group, serving over 23.5 million households across 50 sub-Saharan African countries.
The approval came with strict conditions from the South African Competition Tribunal, reflecting concerns over media plurality, competition, and constitutional rights to freedom of expression and access to information. The process included submissions from various stakeholders to ensure a balanced outcome.
Local Content Investment
The Tribunal has conditioned approval on maintaining investment in South African general entertainment and sports content. Canal+ and MultiChoice have committed to upholding local funding levels to support indigenous content creators and stories, securing continued opportunities for local talent.
The merged entity also pledges to uplift local communities and creators, implying tailored investment in African narratives across linear and streaming platforms like DStv, GOtv, and Showmax.
Ownership Transformation and Employment Conditions
To comply with South African broadcasting regulations, especially pertaining to broad-based black economic empowerment (BBBEE), the transaction involves separating MultiChoice’s broadcasting services arm (LicenceCo). This aims to maintain local ownership stakes and economic transformation goals within the sector.
A legally binding condition prohibits retrenchments of South African employees within Canal+, MultiChoice Group, and LicenceCo for three years post-merger, safeguarding employment amid the ownership transition. The companies have also committed that terms and conditions of employment for South African staff will remain intact, reflecting a priority on workforce stability during integration.
Summary
This acquisition marks a major transformation in African media by combining Canal+’s global expertise with MultiChoice’s strong local presence, enhancing content investment and providing structural guarantees to ensure local ownership interests and workforce protection remain priorities. Both firms can now move forward to realize greater scale and operational synergies. The deal reinforces Canal+'s ambitions to dominate the African media landscape. The separated entity will be HDP-majority-owned and independently run. The tribunal's greenlight marks the final stage in the South African competition process. The deal is part of Canal+'s broader M&A push post-Vivendi spin-off.
[1] https://www.multichoice.com/ [2] https://www.canalplusgroup.com/ [3] https://www.sa competitiontribunal.co.za/ [4] https://www.bbbee.org.za/ [5] https://www.businesslive.co.za/
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- The consolidation of Canal+ and MultiChoice Group will create the continent's largest pay-TV and streaming business, potentially changing the financial landscape of African media.
- To ensure continuity and promote local content, the South African Competition Tribunal has conditioned its approval of the merger on maintaining significant investment in South African general entertainment and sports content, as well as safeguarding employment for the next three years.
