Kenya, July 28 -- French media giant Canal+ has fully acquired MultiChoice, the parent company of DStv and GOtv, in a landmark Sh245 billion ($3 billion) deal approved by South Africa's Competition Tribunal. The acquisition, finalized on July 23, 2025, marks a pivotal shift in Africa's pay-TV and streaming landscape, uniting Canal+'s 8 million subscribers across 25 African countries with MultiChoice's 14.5 million in 50 sub-Saharan markets.
The deal, which includes a 67% premium on MultiChoice's share price, aims to strengthen local content production and counter global streaming giants like Netflix.
The Canal+ and MultiChoice acquisition, valued at approximately R55 billion, is one of Africa's largest media mergers, approved with conditions to support historically disadvantaged persons (HDPs) and small, medium, and micro enterprises (SMMEs).
Canal+, already holding a 45.2% stake in MultiChoice since 2024, offered R125 per share to acquire the remaining shares, a deal that has reshaped the continent's broadcasting landscape.
The Competition Tribunal's approval, following a recommendation from the Competition Commission in May 2025, ensures the merger aligns with South Africa's public interest goals, including a R26 billion investment over three years in local content, skills development, and sports programming.
Canal+, a Vivendi-owned French media conglomerate, aims to deepen its footprint in English-speaking African markets through this acquisition. With MultiChoice's DStv and GOtv platforms dominating sub-Saharan pay-TV, the merger creates a powerhouse with enhanced scale to compete against global streamers like Netflix and Disney+.
Canal+ CEO Maxime Saada emphasized the deal's potential to tap high-growth markets and deliver synergies, stating, "This is a major step toward creating a global media company with Africa at its heart."
MultiChoice CEO Calvo Mawela echoed this, highlighting the merger's role in uplifting local communities and fostering innovation in African content creation.
The Competition Tribunal imposed conditions to address public interest concerns, ensuring MultiChoice remains headquartered in South Africa and promotes local audiovisual content.
A key commitment includes funding for South African entertainment and sports programming, alongside support for HDPs and SMMEs in the industry. The merged entity will also maintain local news diversity and seek a secondary listing on the Johannesburg Stock Exchange (JSE).
To comply with South Africa's 20% foreign ownership cap on broadcasting licenses, MultiChoice will carve out its domestic unit into LicenceCo, a new entity majority-owned by HDPs. These measures aim to preserve South Africa's media ecosystem while fostering growth.
While the Competition Tribunal's approval marks a significant milestone, the Canal+ and MultiChoice deal awaits clearances from the Financial Surveillance Department, JSE, Takeover Regulation Panel, and Independent Communications Authority of South Africa (ICASA).
The companies are on track to meet the October 8, 2025, deadline, with no disruptions expected for DStv and GOtv subscribers. The deal's structure, including a mandatory cash offer of R125 per share, reflects Canal+'s strategic acquisition approach after increasing its stake from 35% in 2024.
The R26 billion public interest package, based on MultiChoice's past spending, underscores the merger's commitment to South Africa's creative and economic landscape.
The acquisition has sparked varied reactions on X, with some users praising the merger's potential to elevate African content globally, while others express concerns about foreign control of South Africa's media.
Industry analysts view the deal as a response to the growing dominance of streaming platforms, with MultiChoice gaining capital to innovate and expand.
Critics, however, question whether the R26 billion investment will deliver incremental benefits beyond MultiChoice's existing commitments, given limited financial transparency.
The Canal+ acquisition of MultiChoice positions the combined entity as Africa's leading pay-TV and streaming provider, with a subscriber base of over 22 million.
This scale strengthens their ability to negotiate content deals and invest in original African productions, crucial for competing with global platforms. MultiChoice's DStv, known for sports like the English Premier League and local dramas, will benefit from Canal+'s expertise in audiovisual content and video-on-demand services.
The merger also supports MultiChoice's efforts to counter Netflix's growing African subscriber base, with analysts predicting increased investment in local shows and sports broadcasting.
With Canal+'s full ownership, MultiChoice is set to undergo a strategic restructuring, focusing on local content and technological innovation. The merger aligns with Canal+'s post-Vivendi spin-off strategy of aggressive mergers and acquisitions, as evidenced by their London listing and expansion into 25 African markets.
For MultiChoice, the deal provides financial stability to navigate challenges like subscriber retention and competition from streaming services. The commitment to skills development and export promotion will likely boost South Africa's audiovisual industry, positioning the merged entity as a global contender with a strong African identity.
A New Era for African MediaAs Canal+ and MultiChoice finalize regulatory approvals, the Sh245 billion deal sets a precedent for foreign investment in African media.
The merger's focus on local content, HDPs, and SMMEs reflects a balance between global ambitions and local priorities. With DStv and GOtv poised for growth under Canal+'s leadership, the African media landscape is entering a transformative phase, promising enhanced content diversity and innovation for millions of subscribers across the continent.
Published by HT Digital Content Services with permission from Bana Kenya.