MultiChoice Working To Secure Regulatory Approval To Complete $3 Billion Canal+ Acquisition

Calvo Mawela, CEO of MultiChoice, has his eyes set on a bold ambition: challenging US streaming giants across Africa.

The African TV giant is currently working to secure regulatory approval for its $3 billion deal with Vivendi SE’s Canal+.

Why It Matters

• The deal would strengthen MultiChoice’s position to compete against global streaming powerhouses like Netflix and Amazon in Africa’s fragmented market.
• Combining with Canal+ allows the two companies to leverage content and scale, with Canal+ strong in French-speaking Africa and MultiChoice in English-speaking regions. “Scale matters in this industry,” Mawela told Bloomberg TV, explaining that size brings bargaining power and revenue opportunities.

The Bigger Picture

• MultiChoice is grappling with subscriber losses and currency depreciation, especially in Nigeria, which affects both profits and customer spending.
• The proposed merger could help the combined entity manage these pressures, offering the resources needed for top-tier content and advanced technology.

Regulatory Roadblocks

• South African ownership laws pose a potential obstacle to the deal. Canal+ has continued to increase its stake in MultiChoice, though talks with regulators remain ongoing.
• Mawela expressed optimism, saying, “We put something together that should be acceptable for the regulators, and engagements are ongoing.”

Africa’s Potential

• With nearly 50 million combined subscribers, a merged MultiChoice-Canal+ would have the resources to expand local content and sports coverage across the continent.
• Africa’s growing young population represents a valuable market for streaming, but barriers remain, including uneven internet access, low incomes, and currency volatility.

What’s Next

• MultiChoice is already collaborating with Canal+ on new content, sharing access to popular sports like English Premier League football. Mawela aims to grow Showmax, MultiChoice’s streaming service, to a $1 billion revenue target within five years.

The Stakes

• French billionaire Vincent Bolloré’s Vivendi is in the midst of restructuring, with Canal+ planning its own listing in London and potentially a secondary listing in Johannesburg, positioning the merged company for further growth.

Source: Bloomberg