Could M-Net Look Into Splitting Some Of Its Assets With Canal+?

Last month, I did a story about Showmax and how rumours had swirled around that MultiChoice was looking to separate it from DStv with some talks expanding further to a possible sale. Canal+ is looking to acquire the pay-tv company and merge their operations.

As some already know, Canal+ is a foreign entity and there's various legal hurdles they'll have to overcome before claiming victory. Since then, they've continued acquiring additional shares and this may a reason and in part it could have to do with its other assets.

MultiChoice isn't the first pay-tv company they sought after as there was Orange SA's film and TV division alongside M7 Group in parts of Europe. The main reason this may prove to be a challenge in Africa has to do with MultiChoice's dominance. 

SuperSport had become the leading destination for sports in Africa and often this had led to legal disputes with various broadcasters such as eMedia Investments. Canal+ is also a monopoly in their respective area something legal entities could explore.

Several media enthusiasts had thought of that possible division of assets with Canal+ funding local broadcasters such as SABC News and Moja Love while controlling daily operations of DStv. MultiChoice or a potential shareholder licensing a few TV channels and Showmax. 

Considering the load of TV channels under M-Net, we presume Canal+ would be able to obtain most of them despite the 20% ruling. In this case, Africa's operations alongside secondary brands Mzansi Wethu and KykNET & Kie with them holding majority sports rights.

M-Net could just limit their operations to a single channel alongside Showmax with M-Net Movies, Mzansi Magic, KykNET, SuperSport Blitz and SuperSport Grandstand. This would form part of a streamlined attempt with further entertainment handled by Canal+.

This separate company and Canal+ would continue working together with Showmax offering the best of the above-mentioned. If anything, this separate company could look into doing more partnerships as seen with NBCUniversal's DStv Glass and Showmax. 

Canal+ with its current assets from MultiChoice would build their own division, Canal+ Africa. This would be where pay-tv platforms DStv and GOtv would reside alongside premium entertainment and sports from Africa Magic, Zambezi Magic, Maisha Magic and SuperSport. 

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