Could MultiChoice And Canal+ Continue To Operate Separately After The Acquisition?

During the year, Canal+ had expressed interest in acquiring remaining shares of the DStv parent company, MultiChoice. Initially serving as a minority shareholder with around 6%-8% in 2020 now owns almost half of the pay-tv company in 2024.

As some readers are aware, Canal+ possible takeover of MultiChoice won't be a simple walk in the park. There's various legal procedures which they have to go through particularly with the Competition Commission seeing as Canal+ is a foreign investor.

According to mandate, Canal+ can only have 20% voting rights of the company. If a takeover is to happen, we could be faced with the possibility of MultiChoice losing its status as an official broadcaster in South Africa.

MultiChoice serves as a monopoly in their current field extending their doors to over 50 countries across Sub-Saharan Africa. It is home to SuperSport, Africa's biggest player in the sporting industry all of which might be folded under French management.

Canal+ intends to play good sport and abide by whatever condition are set by local legislation. This isn't the first rodeo as they snatched French broadcaster Orange TV film and pay-tv group alongside M7 Group a pay-tv brand based in Europe. 

The intention is to unify MultiChoice with their current operations and better equip it to take on the likes of Netflix and Disney+. MultiChoice's pay-tv dominance had seen declines in recent years particularly in South Africa which puts them at uncertainty. 

If this deal were to move around some guesses here is that Canal+ may be exempted from some properties like M-Net, Mzansi Magic and KykNET. Perhaps those will be structured like Moja Love and SABC News were funding is being splashed to keep it on air.

Other brands like Africa Magic and SuperSport could be under the division of Canal+. Same goes with MultiChoice Studios, although channels like M-Net remain untouched in these matters the content however is all under French management. 

Honestly such scenario wouldn't really seem to far fetched. When Disney had acquired 21st Century Studios this exempted FOX News and the American feed of FOX even Canal+ acquisition of Orange TV this was a subsidiary not the parent company, Orange S.A.

MultiChoice and M-Net could continue to operate independently with less expenses. This new division would probably put more focus on Showmax and select few linear channels with someone appointed to manage these assets while others opt for Canal+.

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