By Cynthia Abah
French media giant Canal+ has put forth a bid of $2.9 billion to acquire MultiChoice, the parent company of Africa Magic, DSTV, and Showmax, both entities confirmed on Monday, April 8, 2024.
This move aims to leverage a combined group’s strengths to tackle the evolving landscape of the media and entertainment industry amidst increasing digitalization and globalization, according to statements from the companies.
With Canal+ already holding a majority stake in MultiChoice, this acquisition would position Canal+ as a dominant force in Africa’s paid content market, establishing it as the leading player in entertainment, news, and sports content across the continent.
Previously, MultiChoice’s board had rejected Canal+’s offer of $5.65 per share in February, deeming it undervalued. In response, Canal+ has revised its bid to $6.73 per share in cash, subject to approval by MultiChoice shareholders. MultiChoice, currently valued at approximately $3.8 billion, will convene its independent board to assess the new offer.
However, Canal+ faces regulatory hurdles in South Africa, including requirements for Black economic ownership and restrictions on foreign media ownership. To address these challenges, Canal+ is exploring local partnerships. Additionally, there are reports that South African billionaire Patrice Motsepe may join the bid to help meet Black ownership requirements.
While MultiChoice has a strong presence in English-speaking countries such as South Africa and Nigeria, Canal+ has a broader influence in French-speaking African nations.
