Canal+ buyout of MultiChoice gets greenlight in Botswana, South Africa

French media giant Canal+ has moved a step closer to consolidating its presence in Africa’s broadcasting market after regulators in Botswana and South Africa approved its proposed acquisition of MultiChoice Group. The multibillion-rand deal is set to reshape the continent’s pay-TV and streaming industry amid rising competitive and financial pressures.

Canal+, which already owns 45.2 percent of MultiChoice, plans to acquire the remaining shares for R35 billion (about $2 billion), valuing the company at R55 billion. The offer stands at R125 per share.

In Botswana, the Competition and Consumer Authority (CCA) unconditionally approved Canal+’s acquisition of up to 100 percent of MultiChoice Group, including indirect control of MultiChoice Botswana. The regulator found that the parties do not operate in the same geographic market in Botswana, meaning the merger is not expected to reduce competition.

“There will be no additional market accretion established by virtue of the proposed merger,” the authority said.

The CCA described the deal as a rescue transaction that could preserve jobs and ensure business continuity amid MultiChoice’s ongoing financial struggles. It emphasized that the local shareholding structure would remain unchanged, with citizen ownership unaffected.

For the financial year ending March 2025, MultiChoice Group reported a 9 percent year-on-year revenue drop to R50.8 billion—a decline of R5.2 billion—driven by currency depreciation and lower subscriber volumes. Trading profit fell by R3.8 billion to R4.0 billion, a 49 percent decrease, primarily due to growing losses at Showmax.

“The proposed transaction will rescue its business and ensure job security for the employees of MultiChoice Botswana,” the CCA said.

In South Africa, the Competition Tribunal also approved the deal—this time conditionally—following a recommendation by the Competition Commission. It marks the final step in that country’s regulatory process.

A joint statement on the Johannesburg Stock Exchange by Canal+ and MultiChoice confirmed that the approval is tied to a series of public interest commitments. These include support for Historically Disadvantaged Persons (HDPs) and Small, Medium and Micro Enterprises (SMMEs) in South Africa’s audiovisual sector. Over the next three years, public interest commitments—such as continued funding for local entertainment and sports content—are expected to total R26 billion, based on historical spending.

To comply with South African broadcast regulations, particularly the Electronic Communications Act of 2005, MultiChoice (Pty) Ltd—the entity holding local broadcast licenses—will be spun off into an HDP-controlled company independent of the larger MultiChoice Group.

In its submission to the tribunal, MultiChoice argued the deal was necessary to compete with global streaming giants like Netflix, Disney+ and Amazon Prime Video. These companies benefit from global scale, allowing them to invest more in content and technology and offer lower prices.

“Scale is the way to survive, and we do not currently have the scale we need to succeed in the new environment,” said Steven Budlender, MultiChoice Group’s general counsel. He added that smaller subscriber bases limit spending on areas that enhance user experience, such as content and security.

MultiChoice has 14.5 million subscribers across Africa, dwarfed by Netflix’s 302 million, Disney+’s 236 million and Amazon Prime Video’s 200 million users globally. Though per-user revenue may be similar, global platforms generate higher returns through volume.

The merger is expected to drive down subscription prices, making platforms more accessible and stimulating user growth. MultiChoice’s subscriber base shrank by 1.2 million over the past year—split evenly between South Africa and other African markets—amid high inflation and weakening currencies like the Nigerian naira.

“The combined Group will benefit from enhanced scale, greater exposure to high-growth markets and the ability to deliver meaningful synergies,” said Canal+ CEO Maxime Saada.

The deal is also expected to strengthen MultiChoice’s tech investment, particularly in Showmax. Despite significant investment, the streaming service continues to post losses, and user uptake has lagged expectations.

Currently, MultiChoice owns 70 percent of Showmax Africa Holdings, with the remaining 30 percent held by Comcast through its NBCUniversal subsidiary. While MultiChoice had considered selling more equity to Comcast, it now believes the Canal+ merger could eliminate the need for outside funding.

The companies say they are on track to finalize Canal+’s mandatory offer within the timeline announced on March 4, 2025, when they agreed to extend the Long Stop Date from April 8 to October 8—well ahead of the deadline.

“We look forward to executing the remaining processes required to complete the transaction and to start building something extraordinary: a global media and entertainment company with Africa at its heart,” said Calvo Mawela, CEO of MultiChoice Group.