French broadcasting giant Canal+ is edging closer to acquiring MultiChoice Group Limited (MCG), the African entertainment leader behind DStv, SuperSport, and Showmax.
The acquisition could bring increased investment in Botswana productions, improved technology infrastructure, and enhanced streaming services.
Canal+ initiated its takeover bid in February 2024, offering R105 per share for the remaining MultiChoice shares it did not already own. The French group has since increased its offer to R125 per share in cash, highlighting the strategic value of MultiChoice’s assets.
Currently, the London Stock Exchange (LSE)-listed company holds a 45.2 percent stake in MultiChoice, making it the largest shareholder. Other major investors include the Public Investment Corporation (11.76 percent), M&G Investments (8.62 percent), and Allan Gray (7.83 percent).
The proposed acquisition is now under review by competition authorities, including South Africa’s Competition Commission and Botswana’s Competition and Consumer Authority (CCA). If approved, Canal+ would secure full ownership and gain sole control of MultiChoice and its subsidiaries, including MultiChoice Botswana.
MultiChoice, the parent company of DStv, Showmax, M-Net, and SuperSport, operates in 50 countries across Sub-Saharan Africa, with a strong presence in Botswana through MultiChoice Botswana Proprietary Limited.
Since its establishment in 1992, MultiChoice Botswana has played a pioneering role in the country’s pay-TV industry. It partnered with a local conglomerate to introduce satellite television to Batswana homes. Today, the company employs nearly 150 people, collaborates with over 100 accredited installers, and works with nine agents, including Botswana Post, to serve its expanding customer base.
MultiChoice Botswana contributes approximately $3.6 million to Botswana’s GDP. Beyond its economic impact, the company invests heavily in local content production, providing a platform for Botswana’s creators to showcase their stories across Africa via DStv. Additionally, its MultiChoice Talent Factory (MTF) nurtures young talent in film and television to strengthen the country’s creative sector.
Africa is a key pillar of Canal+’s global strategy. Over the past five years, its subscriber base on the continent has nearly doubled, demonstrating strong growth potential in Africa’s media and entertainment sector.
“Africa is a key pillar in Canal+’s long-term strategy, with its subscriber base in Africa having nearly doubled in five years. Canal+ firmly believes in the continent’s promising future and robust long-term growth opportunities,” the company stated.
Canal+ has operated in Africa for over 30 years, covering more than 25 countries through 15 subsidiaries and over 270 partners and distributors. It offers 360 channels, with a strong focus on French-language and local content in 19 French-speaking African nations. The company has also expanded globally, acquiring stakes in streaming services such as Viu in Southeast Asia and Viaplay, a leading Scandinavian pay-TV operator.
MultiChoice’s extensive operations in English- and Portuguese-speaking Africa, reaching over 21 million households, complement Canal+’s existing African footprint. Together, the two companies aim to create a media powerhouse capable of producing and distributing high-quality African content at scale.
Maxime Saada, Chairman and CEO of Canal+ Group, emphasised the merger’s potential to boost Africa’s cultural and sports industries while bringing African stories to a global audience.
“The complementary geographies, considerable scale, and strengthened capabilities achieved by the combination of these two great companies will ensure that Africa can tell her own stories on her terms, both locally and globally,” he said.
For Botswana, the acquisition could bring increased investment in local productions, improved technology infrastructure, and enhanced streaming services. Canal+ has indicated that consumers across Africa will benefit from a broader and more advanced service offering.
“We are excited about these opportunities, which will be supported by further investment in technology, including the continued offering of a leading satellite service and the rollout of more innovative streaming products,” Saada noted.
Following the acquisition, MultiChoice will become part of a global entertainment leader with Africa at its core. The combined entity will be positioned to compete with international media giants, streaming platforms, and studios.
Canal+’s takeover bid comes at a challenging time for MultiChoice, which reported a 99 percent drop in half-year profits for the period ending September 30, 2024. Group revenue fell 10 percent to R25.4 billion, although organic revenue growth, excluding currency and acquisition impacts, stood at four percent.
Subscription numbers declined by five percent in South Africa (from 7.8 million to 7.4 million) and 15 percent in the rest of Africa. MultiChoice attributed the slowdown to macroeconomic pressures and increased competition from global streaming platforms.
Despite these setbacks, the company has been prioritizing investment in its streaming platform, Showmax, which saw a 50 percent year-on-year growth in its paying customer base. However, these efforts have negatively impacted overall profitability.
“Stripping out Showmax, the group would have seen reported trading profit increase by 28 percent on an organic basis,” MultiChoice CEO Calvo Mawela stated.
The acquisition has encountered regulatory challenges in South Africa, leading to an extended deadline from April 8, 2025, to October 8, 2025. A major regulatory hurdle stems from South Africa’s Electronic Communications Act, which caps foreign ownership of broadcasting licenses at 20 percent of voting rights. Additionally, Broad-Based Black Economic Empowerment (BBBEE) requirements must be met.
To comply with these regulations, MultiChoice Group will undergo a restructuring process. The company’s broadcasting license in South Africa, along with its contracts with South African subscribers, will be placed under a separate entity, MultiChoice (Pty) Ltd (LicenceCo). MultiChoice Group will retain a 49 percent economic interest in LicenceCo, with 20 percent voting rights, while the remainder of the video entertainment assets will remain within MultiChoice Group.
