French media giant, Canal+, has put forth a substantial offer of $2.9 billion to acquire the entirety of MultiChoice, a South African broadcasting company. This bid comes after Canal+’s previous offer of $1.7 billion in February was rejected by MultiChoice’s board, deeming it undervalued.
MultiChoice is well-known as Africa’s largest provider of subscription TV services, offering popular platforms like DSTv and streaming service Showmax. Canal+ currently holds a 35% stake in MultiChoice and is the company’s majority shareholder.
The acquisition of MultiChoice aligns with Canal+’s strategic goal of expanding its reach in Africa beyond West African and French-speaking countries. With operations in 25 African nations, Canal+ is a dominant player in the pay TV market in French-speaking African countries.
Despite its market leadership, MultiChoice has experienced a decline in profits in recent years, attributed to intensifying competition from streaming services. This potential acquisition by Canal+ could bring about significant changes in the African broadcasting landscape.
The move has generated significant interest within the industry as stakeholders assess the potential impact on the competitive dynamics of the African TV sector. As Canal+ looks to bolster its presence in the region, the successful acquisition of MultiChoice could pave the way for a new era in African broadcasting.
