The Story ⚡
MultiChoice and Canal+ have submitted a joint merger control filing to South Africa’s Competition Commission as the French company pursues a R55.3 billion takeover of the Randburg-based pay-tv giant.
Tell Me More
MultiChoice and French media giant Canal+ have formally submitted a joint merger filing to South Africa’s Competition Commission, seeking approval for Canal+’s proposed R55.3 billion acquisition of the pay-TV company. This filing is a significant step in what has been described as an aggressive takeover attempt by Canal+, which already holds over 45% of MultiChoice’s shares.
This merger, classified as a “large merger” under South African competition law, requires both the Competition Commission’s recommendation and the Competition Tribunal’s final approval.
Complicating the process is the country’s Electronic Communications Act, which limits foreign ownership of local media companies like MultiChoice to a maximum of 20%. MultiChoice, which owns popular brands such as DStv, M-Net, and SuperSport, is also engaging with the Independent Communications Authority of South Africa (Icasa) to navigate these regulatory hurdles.
Key Background
MultiChoice is a leading South African company that is well known for operating DStv, one of the largest satellite television services in Sub-Saharan Africa. In addition to DStv, it manages GOtv, a smaller service available in over nine African countries, and Showmax, a streaming platform. Originally a subsidiary of M-Net, MultiChoice evolved from managing M-Net’s subscription services to broadcasting a wide array of channels on its own platform. One of its notable innovations is DStv Stream, formerly DStv Now, which allows subscribers to access television content on mobile devices like smartphones, laptops, and tablets.
Historically, MultiChoice extended its reach beyond Africa with operations in regions such as Scandinavia, Benelux, Italy, Eastern Europe, and the Middle East through services like Filmnet TV and Gulf TV. Although these ventures have since ended, MultiChoice remains a powerhouse in African pay TV, boasting over 20 million subscribers by 2020. The company has been praised for its rapid growth, becoming one of the fastest-growing pay-TV operators in the world under the media conglomerate Naspers.
Tangent
The potential takeover of MultiChoice by French media giant Canal+ could significantly reshape South Africa’s media landscape. MultiChoice, known for its extensive satellite services like DStv and Showmax, is a dominant player in Sub-Saharan Africa’s broadcasting space. A successful R55.3 billion acquisition by Canal+ would likely alter competitive dynamics, introducing a new global force into the region’s media market.
This merger could affect how media companies approach content creation, distribution, and pricing, potentially squeezing out smaller competitors. Canal+, with its global reach and deep pockets, might bring international content into Africa, while simultaneously influencing local programming strategies. Such a move could also prompt local media companies to innovate, in a bid to retain their audience and relevance in an evolving industry.
In Summary
The outcome of this merger will be closely watched, as it has the potential to impact the future of African media significantly.
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