MultiChoice Acquisition Approved: Canal+ Deal Valued at R53 Billion

MultiChoice Acquisition by Canal+ Approved: A Major Milestone in African Media

South Africa’s Competition Tribunal recently made history for Africa’s media landscape. They conditionally approved French media giant Canal+’s purchase of MultiChoice, the continent’s leading pay-TV operator. Valued at approximately R55 billion, this deal promises to completely transform Africa’s entertainment and media sectors.

Deal Overview

• Offer & Valuation: Canal+ offered R125 per share, valuing MultiChoice at R55 billion (approximately $2 billion). This offer includes about R30 billion in cash for the remaining shares, with Canal+ already owning over 45% of MultiChoice.
• Regulatory Approval: Following a positive recommendation from the Competition Commission in May 2025, the Competition Tribunal granted conditional approval on 23 July 2025.

Key Conditions & Public-Interest Commitments

The approval comes with several important conditions that reflect a strong commitment to the public interest:

• No retrenchments related to the merger for three years, ensuring job security for employees.
• Majority ownership of the South African broadcasting licence entity (LicenceCo) by historically disadvantaged persons (HDPs) and workers. This move complies with South Africa’s Electronic Communications Act.
• A commitment of R26–30 billion over three years for investment in local content, supplier development, skills training, sports projects. Additionally, the inclusion of HDPs and SMMEs in the industry is part of the deal.
• The continued operation and HQ in South Africa, with a secondary listing on the Johannesburg Stock Exchange (JSE) within nine months post-merger.

Strategic Vision & Market Impact

• Pan-African Integration: This acquisition solidifies Canal+’s position in English-speaking African markets. By leveraging MultiChoice’s vast DStv network and Showmax platform. Canal+ is preparing to tighten its grip on the African entertainment market.
• Competitive Edge: The merger enables the newly combined entity to better compete with global streaming giants like Netflix, Disney+ and Amazon. This will create a powerful cross-border media player.

Financial Resilience & Growth Prospects

• Subscriber Base: MultiChoice has an extensive 19–20 million households across DStv, GOtv, and Showmax. However, there is a slight decline in some markets, like Nigeria.
• Solid Financial Position: MultiChoice builds its strong performance on premium content rights, especially in sports and entertainment.. This is alongside a strategic focus on African storytelling.

Timeline & Regulatory Compliance

• Deadline Extension: The parties have extended the long-stop date for meeting all merger conditions to 8 October 2025.
• LicenceCo Restructuring: To comply with South African law limiting foreign ownership in broadcasters… MultiChoice’s South African license entity will be spun off into LicenceCo. This entity will be majority-owned by HDPs, with Canal+ holding minority and voting rights.

Implications for South African Audiences & Creators

This acquisition has significant implications for local content and media creators:

• Investment in Local Content: Expect a greater focus on local productions, reflecting more African stories and talent.
• Job Security: The merger guarantees job protection for employees for three years, offering stability in an ever-changing media environment.
• Increased HDP and SMME Participation: The merger is expected to provide more opportunities for historically disadvantaged individuals (HDPs) and small businesses. They can now play an active role in the media and entertainment sectors.

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A New Era

Canal+’s R55 billion acquisition of MultiChoice marks an historic moment for African media. LicenceCo is guaranteed local ownership. Meanwhile Canal+ commits to significant public-interest investments. If Canal+ and MultiChoice meet all merger conditions by October 2025, they will pave the way for creating an empowered, inclusive, and competitive media landscape across Africa.