Canal+ Secures Approval for $2.82bn MultiChoice Deal, Cementing African Expansion Strategy
The South African Competition Tribunal has approved French broadcaster Canal+’s $2.82 billion acquisition of MultiChoice, removing the final regulatory hurdle in a landmark deal that is set to reshape Africa’s pay-TV and media landscape.
The acquisition, which brings Canal+’s parent company Vivendi one step closer to achieving its target of 60 million global subscribers by 2028—half of them in Africa—expands the broadcaster’s footprint across the continent and underscores its strategic pivot away from Europe’s saturated markets.
Canal+ CEO Maxime Saada has described Africa as “the most exciting media opportunity in the world,” highlighting the continent’s growing youth population, expanding middle class, and increasing digital connectivity as key drivers of future growth.
Legal and Political Considerations
The deal had initially faced regulatory and political complications, especially with South Africa’s foreign ownership laws, which restrict foreign entities from holding more than 20% of the voting rights in companies that own broadcasting licences.
To comply, Canal+ and MultiChoice will establish a new entity, LicenceCo, which will hold the broadcasting licence and be majority-owned by South African shareholders, including Phuthuma Nathi, a Black Economic Empowerment (BEE) vehicle. The Competition Tribunal’s approval is conditional on this structural arrangement.
Additionally, influential South African investors Sipho Maseko and Sonja de Bruyn have been brought on board to further reinforce local ownership and governance.
Concerns had also been raised about the political influence of Canal+’s key shareholder, Vincent Bolloré, whose media holdings in France have been linked to broader political agendas. However, regulatory authorities and analysts say economic pragmatism outweighed those concerns.
“Economic logic won out,” noted Jean-Michel Huet, a partner at consulting firm BearingPoint.
Turnaround for MultiChoice
The acquisition follows a turbulent period for MultiChoice. The company, which boasts 19.3 million subscribers in English-speaking Africa, initially rebuffed Canal+’s R105 per share offer earlier this year, citing undervaluation.
However, mounting operational challenges—including the loss of four million subscribers over the past two years, a 10% fall in revenue, and a 40% drop in EBITDA—forced a strategic rethink. Compounding matters were macroeconomic headwinds such as persistent power outages in Zambia and severe inflation in Nigeria, where the Naira depreciated by over 50% within a year.
The revised R125 per share offer, valuing MultiChoice at $2.82 billion, was subsequently accepted by the board.
Strategic Implications
With MultiChoice under its control, Canal+ secures dominance in Africa’s pay-TV market and gains a powerful platform for original content creation, distribution, and streaming innovation tailored to African audiences.
For MultiChoice, the deal offers renewed capital injection, strategic realignment, and the long-term backing of a global media conglomerate—bolstering its resilience amid regional economic volatility.
The transaction also signals an era of intensified competition in Africa’s media sector, with global and regional players likely to respond with increased investments in local content, technology upgrades, and customer engagement strategies.
The deal is expected to be finalized in the coming months, pending implementation of the LicenceCo structure and final administrative processes.
