French Company Canal+ Offers $2.9 Billion to Acquire Multichoice

French media conglomerate Canal+ has tabled a lucrative offer of $2.9 billion (£2.2 billion) to acquire full ownership of South African broadcasting giant MultiChoice, signaling a renewed bid after a previous offer was rebuffed by MultiChoice’s board.

This latest offer represents a substantial increase from the $1.7 billion bid presented by Canal+ in February, which MultiChoice deemed inadequate and rejected for undervaluing the company.

MultiChoice holds the mantle as Africa’s largest provider of subscription TV services, boasting prominent brands such as DSTv and the streaming platform Showmax.

Canal+ already commands a significant stake in MultiChoice, owning 35% of the company and serving as its majority shareholder.

The potential acquisition aligns with Canal+’s strategic ambitions to extend its footprint across the African continent, transcending its current presence predominantly in West African and French-speaking regions.

With operations spanning 25 African countries, Canal+ is a dominant force in the pay-TV landscape, particularly in French-speaking African nations.

MultiChoice, however, has faced challenges in recent years, grappling with declining profits amidst mounting competition from burgeoning streaming services.

The proposed acquisition underscores the intensifying competition within Africa’s media and entertainment sector, fueled by shifting consumer preferences and evolving technological landscapes. As the industry continues to evolve, Canal+’s pursuit of MultiChoice signifies a pivotal moment in shaping the future landscape of African broadcasting and content delivery.