Canal+ to Acquire South African Pay-TV Provider MultiChoice After Regulatory Nod

Africa’s media landscape is set for a major transformation as French media giant Canal+ has received a crucial green light to acquire MultiChoice, the continent’s leading pay-TV operator. The South African Competition Tribunal officially approved the R53 billion (approximately USD 3 billion) deal this week, marking a significant step towards creating a formidable pan-African broadcasting powerhouse.

The Tribunal’s approval, announced on July 23, 2025, follows an extensive review and comes with strict public interest conditions. These include commitments to foster South Africa’s audio-visual industry through sustained investment in local content, promotion of historically disadvantaged persons (HDPs) and small to medium-sized enterprises (SMMEs), and a three-year employment protection guarantee for MultiChoice staff.

This is a shot in the arm for both viewers and contracted content providers from around Africa, who will benefit from an increased content layer, as well as a spur in the creative economy. So far, Multichoice has partnered with NBC Universal via their respective streaming platforms Showmax and Peacock. This deal has seen Showmax benefit from Peacock’s advanced technology and steady flow of premium content. Peacock, on the other hand, has wedged a foot in the vast, Africa-wide market via a native platform.

To comply with South African foreign ownership laws, which cap foreign control of broadcasting licenses at 20 per cent, a new entity called LicenceCo will be formed. This entity will hold MultiChoice’s domestic broadcasting license and be majority-owned and controlled by HDPs, ensuring local compliance for this landmark acquisition.

Road Ahead for the Mega-Merger

While this approval is a major hurdle cleared, the Canal+ MultiChoice acquisition is not yet complete. The transaction still requires consent from the South African Reserve Bank’s Financial Surveillance Department, clearance from the Johannesburg Stock Exchange (JSE), approval from the Takeover Regulation Panel, and crucially, authorisation from the Independent Communications Authority of South Africa (ICASA) for the license transfer to LicenceCo. Both Canal+ CEO Maxime Saada and MultiChoice CEO Calvo Mawela remain optimistic, aiming to finalise the deal before the October 8, 2025, long-stop date. They envision a stronger, more competitive entity with enhanced scale and greater capacity for content investment across Africa.

MultiChoice’s Past Challenges Set the Stage

This acquisition arrives as MultiChoice navigates a challenging period, having grappled with numerous historical problems that impacted its financial performance and subscriber base. The company has faced significant headwinds from volatile macroeconomic conditions across its diverse African markets. Persistent depreciation of local currencies against the US dollar has drastically inflated the cost of acquiring international content, directly impacting profitability, particularly in its “Rest of Africa” operations. High inflation and rising living costs have also squeezed consumer disposable income, pushing pay-TV services into the realm of discretionary spending and leading to substantial subscriber churn. MultiChoice recently reported a loss of 2.8 million linear subscribers over just two financial years.

The Competition Landscape

Beyond economic woes, MultiChoice has confronted an existential threat from global streaming giants like Netflix and Amazon Prime Video. These Over-The-Top (OTT) platforms offer competitive pricing and vast on-demand libraries, drawing away subscribers who increasingly prefer flexible viewing options. Content piracy and the burgeoning consumption of free content via social media have further compounded the pressure on MultiChoice’s traditional pay-TV model. While its own streaming service, Showmax, has grown, it has also incurred significant trading losses due to heavy investment.

The complex interplay of macroeconomic pressures, intense competition, and evolving consumer habits has placed MultiChoice under immense financial strain, even leading to periods of technical insolvency. The strategic infusion of capital and operational guidance from Canal+ is expected to provide the resilience needed for the combined entity to thrive, solidifying its position as a dominant force in the rapidly evolving African media and entertainment industry.

Featured Image Courtesy: Multichoice