An important turning point in African media history has been reached with the official approval of the French media conglomerate Groupe Canal+’s acquisition of the pay-TV behemoth MultiChoice by the South African Competition Tribunal. This approval allows Canal+ to finalise its planned acquisition of MultiChoice, a company well-known for its services like DStv and Showmax, which dominate the South African pay-TV market, subject to a number of public interest conditions.
Details of the deal
Canal+ had already acquired more than one-third of MultiChoice’s shares and made a mandatory cash offer of 125 rand per share to buy the remaining shares, bringing MultiChoice’s total valuation to about 55 billion rand (roughly $3.1 billion). In order to secure full ownership, the deal requires a total investment of about 35 billion rand ($2 billion). After receiving all necessary regulatory approvals from the appropriate South African authorities, such as the Johannesburg Stock Exchange (JSE), the Takeover Regulation Panel, the Independent Communications Authority of South Africa (Icasa), and the Financial Surveillance Department, Canal+ has promised to complete the deal by October 8, 2025.
Conditions attached to approval
A thorough set of requirements intended to safeguard South African interests and guarantee that the agreement benefits regional business and consumers were included in the Competition Tribunal’s approval. Among these conditions, the following are crucial:
- Local content investment: Funding for South African sports and entertainment content must continue to be provided by Canal+. This maintains local storytelling and sports coverage by guaranteeing that local content producers and creators continue to receive strong support.
- Support for historically disadvantaged persons (HDPs) and small businesses: The agreement requires small, micro, and medium-sized businesses (SMMEs) and HDPs to be involved and empowered in the audiovisual industry. This is meant to increase economic participation for formerly under-represented groups and promote a more inclusive industry.
- Local ownership and operational structure The operations of MultiChoice’s South African broadcasting licence, known as LicenceCo, will be divided into a distinct company that will continue to be primarily owned by historically underprivileged South Africans and organisations like Phuthuma Nathi, Afrifund Consortium, and a Workers’ Trust. Under this arrangement, MultiChoice Group will retain a sizable economic and voting stake, but content services for South African consumers will largely remain unaffected.
Impact on South African ConsumersCustomers can expect no immediate disruptions to the subscriber experience or pricing as the acquisition is set up to guarantee the continuation of services like DStv and Showmax. The requirements for consistent investment in local content are especially crucial because they ensure that South African viewers will always have access to a consistent supply of local sports and entertainment programming. In a media landscape where local sports and cultural content are highly relatable, this is essential.
Furthermore, because of Canal+’s larger scale and resources, the merger is anticipated to open up operational efficiencies and synergies. Over time, this might result in better technology offerings, more aggressive pricing plans, and a wider variety of content choices for South African subscribers. Maxime Saada, CEO of Canal+, emphasised how the combined company could offer more value by utilising its increased scale and gaining access to Africa’s quickly expanding markets. This could result in a more robust and competitive pay-TV and streaming ecosystem that benefits customers.
Broader economic and industry implications
The agreement is also thought to strengthen the creative economy in South Africa. Canal+ and MultiChoice are demonstrating their commitment to developing local talent and promoting industry growth by pledging more than 30 billion rand in public interest investments. By increasing participation and potentially fostering innovation and job creation in South Africa’s audiovisual sector, the structural commitments to HDP ownership seek to create a more equitable media sector.
Caveats and next steps
The transaction still needs to complete other legal and regulatory requirements, even though the Competition Tribunal’s approval is a significant regulatory barrier removed. These include approvals from other regulatory agencies and adherence to the South African Electronic Communications Act’s restrictions on foreign ownership. By the stated deadline of October 8, 2025, the parties hope to have the transaction completed and all conditions fulfilled.
Summary
Groupe Canal+’s acquisition of MultiChoice marks a historic media consolidation in Africa, with stringent regulatory oversight guaranteeing the protection of local content funding, industry empowerment, and consumer experience. With strong commitments to local entertainment and sports production, South African consumers can anticipate the continuation and possible improvement of their pay-TV and streaming services. In addition to merging two media giants, the agreement seeks to create a media conglomerate that supports African creative and content industries, promoting greater economic growth and inclusion in the region.
