Could StudioCanal Africa Also Be On The Pipeline For MultiChoice Suitor Canal+?

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StudioCanal serves as the production arm for the French broadcaster offering original films and series in US, UK, France and several parts of Europe and Africa. It is home to franchises like Paddington and Bridget Jones and also has co-produced films like Terminator 2: Judgment Day and Free Willy.

With its parent company Canal+ looking to complete it's acquisition of MultiChoice plans are underway to stretch StudioCanal's expertise through this transaction as seen with M-Net's Spinners. Last year, production began in Cape Town on a new film titled Huntington starring American actor Glen Powell.

They plan to utilize MultiChoice's resources to build on intellectual properties (IPs) to better combat against Netflix that too has curated local content such as Blood And Water. Prior to MultiChoice's inclusion, Canal+ already owned ROK Studios (Nigeria) and Zacu Entertainment (Rwanda) with Marodi TV (Congolese) likely to join the ranks.

Should this transaction with MultiChoice progress we can only imagine that StudioCanal Africa would be formed from all this. It would consist of MultiChoice/M-Net Studios, Zacu Entertainment, Marodi TV, ROK Studios and any future investment Canal+ plans to pursuit in Africa.

Right now, ROK Studios and likely Zacu Entertainment are part of StudioCanal's global operations but we have seen them launch regional versions in the UK and Australia. It would only make sense to have one situated in Africa considering that MultiChoice would make them a giant in the region.

At the moment, Canal+ had been distributing Africa Magic Epic and select content from M-Net onto their platforms in french overseas. With their stake in MultiChoice, we can only imagine that they'll seek to unite these markets and give their French endeavours more scale as seen in parts of Africa with Africa Magic and Zambezi Magic.

Could 1Max Be Over And Out On DStv As Canal+ Edges Closer To MultiChoice?

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Based on the Showmax streaming service, 1Max serves as a promotional window to various originals and international content from the streaming service alongside reruns from M-Net. Despite Comcast holding a 30% stake in Showmax, 1Max is handled entirely by MultiChoice/M-Net who serve as a majority shareholder.

Last year, MultiChoice and M-Net decided to do away with Me and 1Magic with their deaths that were partially exaggerated as the offering merged to form 1Max. This received very little buzz from MultiChoice even for a repeats channel they would have been some type of promotion but not in this case with 1Max.

Since then, speculation had been going around that 1Max could be done and dusted once or if Canal+ managed to complete it's acquisition of MultiChoice. Firstly, the French broadcaster doesn't like this idea of Showmax posing as a threat to DStv and has even hinted at the two serving as contenders.

What I think this could mean is that Showmax gets spun off amongst shareholders within MultiChoice. Rumours had been making the round that MultiChoice had considered dividing DStv and Showmax and this grew further to even suggest a potential sale in their assets particularly DStv.

If this does happen to be the case, it would put 1Max in a very precarious position as this is the lifeline for Compact+. Most other channels like Comedy Central, BBC Brit and Universal TV are already viewable on much lower bouquets and with its cancellation there wouldn't be much value on the package.

What Was Me And 1Magic Replaced With On Canal+'s DStv English Plus Add-On?

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Last year, MultiChoice decided to axe Me from the DStv Compact and Family packages as it merged with the premium channel 1Magic to form 1Max. The channel would comprise of shows viewed on the revamped Showmax streaming service which forms as part of a joint venture with NBCUniversal.

After Canal+ acquired a stake in MultiChoice and this was before the hostile takeover which is expected to conclude within the first half of 2025. The French broadcaster was able to license content from M-Net with DStv offering Africa Magic Showcase, Discovery and Telemundo through their platforms as an Add-On in French markets.

M-Net City and VUZU formed part of this lineup before merging to form Me alongside 1Magic. As seen with DStv's lower bouquets, these channels were ousted from Canal+ platforms and wasn't replaced by 1Max despite distributing 1Magic.

But rather Canal+ opted to distribute Universal TV in place of Me with E! taking over the spot formerly reserved by 1Magic. These channels are owned by NBCUniversal and as we mentioned sometime ago select content from Me and 1Magic can be seen on these brands including The Real Housewives, S.W.A.T. and NCIS: Los Angeles.

Of course, M-Net didn't think that the decision to remove Me will have rippling affects as Mzansi Magic exempts itself local shows like Recipe For Love And Murder and Legacy. Expanding on Me, it was also home to international franchises like The Amazing Race, Survivor and MasterChef now consumers have to turn to SABC or Showmax.

Despite the rippling affects of linear TV overseas there's still a lot of dependency for such platforms in other countries as Canal+ seeks to grow its operations with the acquisition of MultiChoice following its split from Vivendi. But in some way, the actions depicted by MultiChoice had been seen through rival broadcasters.

eMedia Investments' at one point had e.tv distributed a majority of programming from NBCUniversal, Disney and CBS Studios before folding that under Openview. SABC made a similar move with SABC 3 which proved to be controversial it even led viewers and content distributors to flee the channel.

How The MultiChoice Acquisition Might Worsen Things For DStv?

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DStv serves as the largest entertainment entertainment platform in Africa by MultiChoice despite seeing a loss in consumers in recent years with its parent company undergoing a takeover by Canal+. It offers a variety of local and international content from Disney, Warner Bros. Discovery and BBC alongside the best in sports.

As reported in 2024, Canal+ is in the process of completing it's acquisition of MultiChoice with South African regulators. Should this deal move ahead, it would give the French broadcaster access to almost 50 million households with close to 30 million residing in Africa which would help them take on giants like Netflix.

Prior to the MultiChoice takeover, Canal+ already offered services in Europe through SPI International, Viaplay, Platforma Canal+ and the M7 Group with V+, VIU and Canal+ Myanmar residing in Asia. With Canal+ facing constraints in France viewed these markets as potential outlets for growth. 

Similar to MultiChoice, most of these properties listed served as start ups for Canal+ before being placed under French control. That was because Canal+ didn't have the expertise or necessary resources to compete in these markets so the other way would be through corporate buyouts or partnerships.

In Francophone Africa, a market in which Canal+ remains the dominant player very similar to DStv has very little to be desired. When it comes to France and Europe, Canal+ has plenty to compare with DStv but in Africa that is all on MultiChoice if Canal+ is dominant in one area it would be local content.

A tie-up with MultiChoice would make Canal+ a  dominant player and give them the scale as seen in France and parts of Europe. Canal+ has licensed numerous channels from DStv such as M-Net Movies, Africa Magic Epic and Zee World for these consumers in french markets and this transaction could lead to more content sharing.

As for DStv, there could be cuts when Disney+ was I  pre-development stages Disney didn't have much content for adults and the FOX acquisition gave them that. But things didn't improve for FOX as the Disney takeover led to numerous FOX channels across the world and studios to close.

On the DStv side, some outlets had stressed about that 20% cap put on foreigners even if Canal+ acquired MultiChoice it's voting rights in SA are minimal. Majority of MultiChoice's services come from South Africa and some fear that part of these services could as well be reduced if not closed even with a third party managing it's licenses.

If you look at Canada, a majority of MultiChoice's content providers are handled by local businesses Corus Entertainment manages Paramount Global with Bell Media handling Comcast. Channels that have still been exempted from this lineup in the region include MTV, Comedy Central, BET, Nicktoons, DreamWorks Channel and E!.

Corus through the Disney Channel has been importing Canadian shows while the global part is still Disney. This could be the case for DStv, where Canal+ the employee or as the stake in South Africa handles various licensing agreements while it's partner handles the financial aspect and whoever handles the finances has more power.

 

This is what happened when StarTimes acquired a 20% stake in TopTV (now StarSat) even though On Digital Media held the 80%, StarTimes decided who they should do business with. On Digital Media in this regard would turn down some businesses that wound up being licensed to other parts of Africa.

Another hurdle awaiting DStv with this takeover is consolidation, when Discovery acquired Warner it was very similar to Disney they were only cuts nothing new or beneficial came out of this deal. Even with their Max streaming service, what they did was use it as a promotional window for Discovery+.

This is where DStv could be heading, Canal+ curated local content in Francophone Africa and with this takeover they'll probably try to give that more exposure. MultiChoice had already done that with Africa Magic and SABC News so it only seems fair if the French implement similar mechanisms.

Who knows maybe this takeover will see M-Net curate and license more content from StudioCanal as this was outlined in the company's prospectus. 

Could KykNet And Mzansi Magic Undergo Further Restructure As Canal+ Edges Closer To MultiChoice?

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For those who haven't heard the news already, VIU which serves as one of the various streaming services competing with Netflix, Showmax, Amazon Prime Video and Disney+ now offers Afrikaans programming. After announcing plans to curate content in local languages original and dubbed programs like Eerste Liefde Laaste and Trom.

This isn't the first time that VIU has curated local content as they've licensed numerous projects from the SABC such as Skeem Saam, Uzalo, Muvhango and uBettina Wethu.

VIU aside from being a subsidiary of Canal+ who is currently in the process of completing it's acquisition of MultiChoice is very much like Showmax when it comes to scale and content. Should this deal move ahead, DStv consumers are likely to be seeing more imports on Mzansi Magic and KykNet.

Although from everyone's understanding, Canal+ would retain a 20% stake in MultiChoice SA there is ways to navigate those restrictions. KykNet has become a Southern African brand by filming content in Namibia and Botswana where this restriction wouldn't apply and another as we already mentioned is VIU.

VIU would continue curating content from the market with KykNet and Mzansi Magic serving as imports to select shows as seen with Showmax. For someone who uses Showmax wouldn't this render the mentioned brands obsolete as most of their shows would be accessible elsewhere.

That's what already seen with 1Max as its confined to premium package despite consumers on the mentioned offering getting Showmax at no extra charge. This is also a meant to serve as a placeholder to Me but seeing as it's not a lower tiered channel it's basically redundant.

Canal+ Shuts Down It's Pay-TV Operations In Ethiopia

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Last year, it was reported that Canal+ would be shutting down its pay-tv operations in Ethiopia after 3 years siting poor consumer growth. Another may have to do with its ongoing transaction to acquire MultiChoice with them also offering services in Ethiopia seek to revamp their operations and ease restrictions.

Canal+ Ethiopia comprised of several channels including Canal+ Gebeta, Canal+ Discover, FilmBox Africa and Love Nature with KIX, Real Time and Cartoon Network already distributed on DStv. With the platform already shuttered, part of this offering has since then been merged with Canal+ Afrique.

Should the takeover move ahead, Canal+ would gain access to M-Net, SuperSport, DStv and GOtv which are viewed as core brands for the broadcaster. Besides that, MultiChoice substitutes most of the local offering viewed by the defunct Canal+ Ethiopia with Abol TV (local content), Zee Alem (telenovelas) and SuperSport Liyu (sports).

Canal+ could restructure this services and perhaps integrate some content from their defunct linear offering. Of course, it is just speculation worst case scenario would be shuttering DStv's services in the region as South Africa remains a highly profitable market for MultiChoice.

It could be that similar to Canal+ Ethiopia, Canal+ looks to close or integrate some of DStv's services within Africa. Aside from MultiChoice, Canal+ is looking to acquire another African pay-tv provider MC Vision after increasing its hold of the company to 75%.

DStv's Linear Offering Reaches A Time Of Uncertainty

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For those who have been following DStv's journey through the year would have noticed the lack of additions so far there was only 1Max which substituted 1Magic. Then followed by Arise News for Southern Africa with further expansions of La Liga to DStv Access with Nickelodeon on DStv Compact but was 2024 really the year of DStv???

MultiChoice removed about 12 channels from their platforms most of which were local and now with the company looking to complete it's takeover by Canal+ by April 2025. Former Telkom CEO, Sipho Maseko is also in talks to join the transaction either in a managerial position or a shareholder.

There's been a lot of fear for sometime about Canal+'s next steps should this deal moves ahead one of which includes existing agreements with Disney, BBC and Warner Bros. Discovery. In France, Canal+ has lost exclusivity to the Disney Channels as the content integrate with Disney+ in 2025.

Another Canal+ already offers it's ROK channels on DStv with, Marodi TV, Zacu Entertainment and France24 that reside in Africa. With this transaction, wouldn't they want to give these brands more exposure within the African market as seen with Africa Magic and Mzansi Magic.

Speaking of Africa Magic, ROK has been rivalling with the broadcaster since it's inception in 2016 and Akwaaba Magic when it launched in Ghana by 2021. What is to become of these entities once Canal+ claims the crowns of supposed rivals does ROK become an import of the two as seen with Magic Showcase.

If DStv's matters doesn't worsen, Warner Bros. Discovery and Comcast are shifting away from their cable networks and we're only left with questions about what could be left of Discovery Family. If TLC and Discovery have been serving as imports for the bulk of channels ranging from HGTV, Investigation Discovery, Animal Planet and Food Network.

Then there's Telemundo, how is Comcast's upcoming spin-off going to retain the channel in Africa because the company has a history of discarding their cable networks e.g. Style Network. SpinCo has been the one calling the shots in Africa now this one will be not be affiliated with Comcast.

Comcast has NBC Studios, Universal Pictures, Telemundo Studios and DreamWorks Animation. From what I can recall, M-Net, SABC and eMedia Investments have been licensing select content for consumers in South Africa and this part has only been focused on these regional networks for  growth.

2025 could shape up one of DStv's most dramatic years as MultiChoice faces a lot of uncertainty not only with the arrivals of new owners but some corporate changes. It could be like analysts have said on various occasions MultiChoice will now unrecognizable in the coming years.

Canal+ Debuts On The London Stock Exchange Following Split From Vivendi

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French pay TV giant Canal+, which is behind “Paddington” producer Studiocanal, has officially split from parent company Vivendi in time for its 40-year anniversary. Making its debut solo on the London stock exchange on Monday, Canal+ enlisted a homegrown executive, Amandine Ferré — who has been at the company for 15 years and was most recently based in China — to “cut the cord” and engineer the IPO.

Canal+ shares opened this morning at 290p and dropped by about 20% after noon local time, giving the banner an estimated valuation of £2.4 billion. Ferré, who is chief financial officer and a member of Canal+’s management board, tells Variety that the fluctuations were anticipated. “We know that in the first few weeks, our share price is going to be a little volatile,” she says. But the exec is forecasting Canal+’s “shares price volatility will calm down in January.”

Ferré previously spearheaded the French TV group’s acquisition of Chinese streamer Viu and flew back from China to Paris earlier this year after getting a call from Canal+ Group CEO and Vivendi board member Maxime Saada, whom she’s known from her early days working as a strategy consultant at Roland Berger. “You only do a listing once in a career, so I wasn’t going to turn it down!” she says. Ferré, 41, comes in with a deep knowledge of both Canal+ and the international market, having grown up in Africa and lived in India and China. “I’ve had nine jobs in 15 years — It gives me a good overview of what the group does,” she says, citing her experience at Dailymotion, the Canal+-owned online video sharing platform, as well as Canal+ Tech and Studiocanal.

The listing of Canal+ is part of Vivendi’s company-wide split project which also sees advertising group Havas and retail giant Louis Hachette Group listed separately in Amsterdam and Paris, respectively.

Ferré says the idea behind the split is to seek a higher valuation for Canal+ and better leverage the growth of these assets. “Before the split, Vivendi was suffering from a so-called conglomerate discount,” she says. “It is our belief that the sum of the value of each entity in the Vivendi group, i.e. Havas, Canal+, Louis Hachette and all the other shareholdings was largely undervalued when compared to the actual value of Vivendi shares.”

It’s not the first time Vivendi has done this maneuver on high-profile assets. In September 2021, Vivendi scored a major coup by listing Universal Music Group, the music powerhouse whose talent roster includes Taylor Swift and Drake, in Amsterdam, and saw UMG’s shares skyrocket by 39% to reach a valuation of nearly $53 billion. Under the leadership of Canal+ Group’s supervisory board chairman Yannick Bollore, the spinoff plan is also meant to drive growth and synergy opportunities with Canal+’s subsidiaries overseas, including MultiChoice in Africa, Viaplay in Scandinavia and Viu in South-East Asia.

“The listing will enable us to use our stock as currency. We’ve already acquired shares in a number of companies and in the future, we may exchange shares. It opens up opportunities that we didn’t have before,” Ferré says.

Canal+ Is Set To Become A Standalone Company After Shareholders Of Its Parent, Vivendi, Overwhelmingly Approved A Spinoff Plan

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More than 97.5% voted to separate Canal+, ad business Havas and publisher Louis Hachette Group. They will begin trading on the London Stock Exchange, Euronext Amsterdam and Euronext Growth Paris, respectively, on December 16. About 72% of Vivendi shareholders were present at the vote.

Canal+ is known for its European pay-TV operations and is also the owner of Paddington in Peru‘s Studiocanal. It has been aggressively investing in international streamer Viu and Africa’s MultiChoice, and can now look forward to a more independent future, albeit still within the Vivendi group.

“We are delighted with the very high adoption rate of our spinoff project,” said Vivendi chairman Yannick Bolloré, whose family has led the demerger plan. “This indisputable result confirms this strong support of our shareholders for this transformative transaction.

“The Supervisory Board would like to warmly thank Arnaud de Puyfontaine and the whole Management Board, all the teams involved in this project, our different advisors and our shareholders for their trust. We are convinced that this new chapter for Canal+, Havas and Louis Hachette Group will be very promising and create value for all stakeholders.” 

Vivendi’s board gave the split the go-ahead a month ago, as part of a move to tighten finances and give its verticals more flexibility. Despite floating on the London Stock Exchange, Canal+ will remain incorporated and taxed in France, and will not be required to follow mandatory stock market regulations on public offers in either its home country or the UK.

The initial spinoff plan was to leave Canal+ with virtually no debt, but it is set to begin trading with debt of €400 million ($433 million), of which about €225M will be related to the company’s investment in African content giant MultiChoice, as revealed last month. Former Paramount Global CEO Bob Bakish will take a spot on the Canal+ board next week once trading begins.

Canal+ launched in 1984 and was acquired by Vivendi 16 years later as part of a transaction that saw it grouped with Universal. Vivendi sold its Universal assets to General Electric, which formed NBCUniversal by merging the production biz with broadcaster NBC.

JP Morgan estimates Canal+ to be worth €6 billion ($6.3 billion).

Sipho Maseko, Former Telkom CEO Is Also Reported To Be Joining Canal+/MultiChoice Deal

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Canal+ is currently engaging with local regulators over the proposed transaction to acquire the remaining shares in MultiChoice of which they hold 45%. Vivendi, who serves as the parent company for the broadcaster is looking to spinoff Canal+ with a meeting of a proposed split being held in the coming weeks.

Canal+ is using this proposed transaction to increase its consumer base with them and MultiChoice looking to scale up over giants like Netflix and Amazon Prime Video. For several months, they've been trying to navigate restrictions over foreign investors and other exclusive undertakings.

It was previously reported that South Africa's richest black man Patrice Motsepe was in talks to join the bid to help meet the country's black ownership requirements. Since then, it was stated that the French broadcaster was looking for someone else other than Patrice to help them finalize the deal.

According to another report from Africa Intelligence, Sipho Maseko who served as the former chief executive officer at Telkom could be joining in Canal+'s pursuit over the pay-tv company. Sources familiar with the transaction say he could become a shareholder taking up a stake or a director of the merged entity.

Both companies have given themselves until April 2025 to finalize the transaction and meet all the necessary requirements to get this transaction approved. Should it be greenlit, Canal+'s consumer base would extend to over 40 million households making Africa it's largest market with over 27 million subscribers.

Canal+ Extends Distribution Deal With Warner Bros. Discovery To Include Discovery, TLC, Cartoonito And Boomerang

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Warner Bros. Discovery is pleased to announce the extension of the distribution of its emblematic children's channels, Cartoon Network, Boomerang and Cartoonito in CANAL+ offers in addition to their availability via Max. From today, Thursday November 21, 2024, CANAL+ subscribers can access these flagship linear channels via the Entertainment Pass and certain historic CANAL+ offers (Family, Complete pack) and benefit from the channels' on-demand service to catch up on their youth programs favorites after their TV broadcast.

This initiative is part of Warner Bros.’ commitment. Discovery offers diversified youth programming, suitable for all ages and the whole family.

Cartoon Network, with its popular series such as The Amazing World of Gumball and Teen Titans Go!, is aimed at children aged 6 to 12.

Boomerang, with its timeless classics such as Tom and Jerry and Scooby-Doo, is aimed at a family audience for moments shared between young and old.

Cartoonito, newly launched in 2023, offers content designed for young people, including programs from flagship Warner Bros. franchises. Animation or Cartoon Network Studio, appropriate for their age. Batwheels, Bugs Bunny Builders, Jessica and her little world, so many exciting stories to help little ones discover the world, open up to others and their emotions.

This extension of the distribution of Warner Bros. channels. Discovery Kids will offer families even more flexibility to follow their favorite children's programs, on-line or on demand.

In addition to France, the distribution partnership between CANAL+ and Warner Bros. Discovery Kids is strengthening with the upcoming arrival of Boomerang, Cartoon Network and Cartoonito in CANAL+ offers in the Antilles, Guyana, Reunion, Mayotte, Africa, the Comoros and New Caledonia/French Polynesia.

The article was published by RegularCapital and Overblog

Maxime Saada On The Attempted Takeover Of MultiChoice And Canal+'s Rise To Global Dominance

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The irony that a French company is set to become the largest flotation in London for more than two years, a time when homegrown corporate successes have shifted to the US, has not been lost on bankers in the City. 

Canal+ is not just any French company, but one that carries deep “cultural significance” across the channel, according to Maxime Saada, who heads the streaming giant and film producer that is part of Vivendi, the media conglomerate controlled by the billionaire Bolloré family. 

Coming just weeks after Canal+ put on the Paddington in Peru premiere in London, the UK stock exchange has rolled out its own version of a red carpet after ministers overhauled and streamlined listing rules for the first time in 30 years this summer. Saada said that London’s markets revamp “to make it as easy, as smooth as possible” was a major factor in picking the UK capital.

Canal+, which has a book value of close to €7bn, is expected to have a market capitalisation of between €6bn and €8bn, said people close to the listing. This would make it the largest primary listing in London since Haleon was spun out of GSK in 2022 at a market valuation of about £30bn, during a period of remarkable drought for a global stock exchange that led to concerns over its rules and lack of domestic UK investor appetite. 

Canal+, which has produced hits including Versailles, is the largest of three businesses being spun out of Vivendi. If a $2.9bn deal to acquire South Africa’s MultiChoice completes early next year, the combined business could be worth as much as €10bn, according to those close to the deal.

With the Bollorés having long argued that the French market’s valuation of the Vivendi business is less than the sum of its parts, the split will test how much more the company’s divisions will be valued separately.

Saada now needs to convince UK investors that Canal+ — like Paddington — has found its right home in London, with plans to use the country as a launch pad for global expansion that he hopes could double the size of the business.

There have been just over a dozen primary listings in London this year, according to data compiled by MKP Advisors, the biggest of which was Raspberry Pi at about £540mm. Bankers struggle to remember the last time that a major French company has crossed the channel for London.

Speaking in an office in the Parisian suburb of Issy-les-Moulineaux that will continue to be the headquarters for Canal+, Saada admits that the decision to relocate the company’s ownership to the London stock exchange disappointed some in the Elysée.

He has sought to allay concerns in France — where it will also continue paying tax — but has also made it clear that the future of the company lies elsewhere, with London bringing greater visibility as a global company and access to international investors. 

“I believe [the French authorities] are relieved that the company headquarters and tax structure is [in] France. We’re not the first French company [to list elsewhere]. Of course, there are some adverse reactions and some people are disappointed. But when we tell our story . . . they understand.”

Canal+ has close to 27mn subscribers to its streaming and TV platforms across 50 countries, of which about 60 per cent are outside France, alongside a TV and films studio arm. In the first nine months of 2024, the company reported a 3.2 per cent rise in revenues to €4.72bn.

“When we look at the path for the future, the partners, the competitors, the markets, the investors, almost all of them are English speaking,” said Saada.

“We used to be a French company, completely relying on the French market for its revenues, its profits, its rights and most of its stuff. And we have transformed into a company that is now international. I cannot say global yet, but that’s the plan.”

M&A will form part of this plan. Adding MultiChoice’s African business, Canal+ will have more than 40mn subscribers; Saada wants to take this to 100mn.

“We don’t want to overextend ourselves, and we’re very careful on the way we spend money. But we need scale. At 27mn [subscribers], you are already a sizeable player. At 40mn/50mn, you are definitely a contender. Higher than that, it’s interesting. That is the only topic.”

Canal+ is already considering taking a majority stake in Asian streamer Viu, while Saada says that Viaplay, the Scandinavian steaming service, could be another potential target. 

Vivendi became the largest shareholder after an emergency recapitalisation of the Nordic media company this year, although it has signed a standstill agreement with the second-biggest investor, the Czech group PPF.

“It’s a possibility. And there are others. If you look at significant pay TV players in the world, there are others. I want to be in a position where we can be a consolidator,” said Saada.

He says that the company was attracted by the new flexibility in rules for the London stock exchange, with the company in effect set to operate a hybrid of French rules allowed under its incorporation in that country and London’s regime.

“We started speaking [with the LSE] about what it means to be a company headquartered in France and listed in the UK. We are the only of our kind, I believe. So it means that not all rules will apply to us.”

These include London’s rules that board members be subject to re-election annually, he said, with Vivendi instead implementing the French standard of more than three years. The Bolloré family will also retain a stake of about 30 per cent in London-listed Canal+, equivalent to what it owns in Vivendi.

As a result, Canal+ is unlikely to be eligible for inclusion in the FTSE 100 rankings. But Saada said that the company was already attracting interest from investors in the UK, even if the company was still not clearly understood by all in the market. He pointed to the need to show the capabilities of the company’s streaming platform, which bundles together content from most of the large US streamers as well as hundreds of live channels and sports. 

Not all existing investors are happy, however. Paris-based asset manager CIAM has raised concerns that minority shareholders will take a hit and that the plan will not close the conglomerate discount. It also warned that the family could also increase its stake without launching a full takeover.

Vivendi declined at the time to comment but a person with knowledge of the situation said the group’s plan “was built on shareholder democracy”.

Saada added: “My focus is, and I believe that is what the Bollorés have proven in the past, to increase the valuation of the company for all shareholders.” 

The decision to split Vivendi is subject to a shareholder meeting on December 9, which requires two-thirds of votes to pass. Saada is confident that it will.

By mid-December, he hopes to be at the front of London’s stock exchange to celebrate its first day of trading. And, despite requests, he says Paddington and his marmalade sandwiches will not be with him this time.

This article was published on Financial Times

"Time Is Of The Essence": Canal+ And MultiChoice Are Rushing To Finalize Acquisition Terms With Local Legislation

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MultiChoice continues to struggle financially, and while there are some green shoots, the company is relying heavily on its deal with Canal+ as its future.

However, this deal faces several hurdles, and if it can overcome these challenges, it will take years to go through.

MultiChoice’s results for the six months through September 2024 revealed that the DStv-owner’s struggles persist.

Revenue for the six months declined by 11% to R24.8 billion, operating profit declined by 49% to R2.5 billion, and its loss increased by 102% to R1.8 billion.

The balance sheet also worsened, with MultiChoice remaining technically insolvent. The company’s negative equity increased by 155% to R2.7 billion in the six-month period.

In addition, MultiChoice’s DStv and other subscribers plummeted from 16.7 million to 14.9 million over the last year. This includes a 5% reduction in South Africa and a 15% decline in the Rest of Africa.

MultiChoice has identified some silver linings, and plans are in the pipeline that could improve this situation.

For example, the company is set to close a deal with Sanlam soon that will significantly improve its balance sheet and wipe out MultiChoice’s negative equity.

MultiChoice expects to recognise an accounting gain of R2.6 billion to R3.3 billion from this deal.

In addition, the company said Showmax has reached its investment peak and should soon start to make a positive contribution to the group’s results.

MultiChoice’s streaming platform has been a drain on its results for years, and its recent rebrand saw the company burning cash to make it happen.

In this six-month reporting period alone, MultiChoice invested an additional R1.6 billion in Showmax, even though the streaming platform has yet to break even.

Another major concern for the company is its declining DStv subscribers. For years, MultiChoice has seen its pay-TV subscribers dwindle.

MultiChoice CFO Tim Jacobs told Daily Investor that this was largely driven by pressure coming from the middle market.

This segment has been significantly strained in recent years, as the high cost of living left them little discretionary spending. This saw thousands of households dump or downsize their DStv packages, hurting MultiChoice’s income.

Therefore, MultiChoice needs to make significant changes to remain sustainable, much less return to profitability.

Luckily for the technology giant, it has a potential lifeline – French media giant Canal+, which has offered to buy MultiChoice for an estimated R55 billion.

Canal+ is a significant MultiChoice shareholder and has steadily increased its stake over the past few years.

The company hit the 35% shareholding threshold at the beginning of this year, triggering a mandatory buyout offer. 

After some back-and-forth, Canal+ offered MultiChoice R125 per share, valuing the company at around R55 billion.

Due to its already substantial stake – Canal+ currently owns around 45% of MultiChoice – the buyout will cost Canal+ an estimated R30 billion in cash. 

This cash injection would not only solve many of MultiChoice’s financial woes but also leave the company with a significant sum of cash to reinvest in its business.

In addition, the synergies between Canal+ and MultiChoice’s operations could see the companies rule pay-TV in Africa.

MultiChoice already has substantial reach in Africa, and Canal+’s presence in the continent’s Francophone countries would allow them to essentially control Africa’s pay-TV market.

MultiChoice and Canal+’s current reach in Africa can be seen in the image from The Outlier below. This makes it clear that combining their forces would make both companies the undeniably dominant provider in Africa’s satellite TV market.

Therefore, this Canal+ deal presents a lifeline for the struggling MultiChoice. However, making this deal happen is easier said than done.

For one, Canal+ is a French company, which triggers specific concerns under South African law.

Specifically, the Electronic Communications Act (ECA) is the most important regulatory hurdle that has plagued Canal+ since it started buying up more MultiChoice shares.

The ECA limits foreign control of commercial broadcasting services through strict ownership rules

- A foreigner may not, whether directly or indirectly, exercise control over a commercial broadcasting licensee.

- No more than 20% of the directors of a commercial broadcasting licensee may be foreigners.

Previously, MultiChoice and Canal+ have been able to work around these restrictions through a Memorandum of Incorporation (MOI), where voting rights for foreigners collectively are limited to 20%.

However, a complete takeover of the kind MultiChoice and Canal+ are looking to make happen is an entirely different story.

While not insurmountable, the ECA presents a significant hurdle for this deal.

Another hurdle for this deal will be convincing the Competition Commission that it would not hinder competition in South Africa’s pay-TV market.

MultiChoice has already submitted its application for this deal to the commission.

Jacobs told Daily Investor that MultiChoice is also now in the process of working with Canal+ and the Competition Commission to submit applications in other jurisdictions where this deal would apply, mostly in Africa. 

“There’s no overlap in many of the markets that we operate in. So, we’re not anticipating this being anticompetitive, but we also are aware that the CompCom process takes quite long,” he said.

Looking at previous similar deals that have been through the Competition Commission, it could take years for MultiChoice and Canal+’s deal to be approved or rejected.

Earlier this month, Vodacom received a blow when the Competition Tribunal issued an order prohibiting its investment in Vumatel and DFA-owner Maziv.

While there is still a possibility that Vodacom may appeal this decision, just reaching this point took the competition authorities three years and several hearings spanning 26 days.

This long waiting time is also the case for deals that are not considered anti-competitive.

Heineken’s acquisition of Distell, one of South Africa’s largest alcohol producers, was a major deal that took about two years to gain full approval from the Competition Commission and Tribunal. 

The transaction was first announced in November 2021, with Heineken planning to buy Distell and Namibia Breweries and then merge these assets into a new joint venture. 

After detailed scrutiny and several rounds of negotiations, the deal was finally approved by the Competition Tribunal in March 2023, and the deal finally closed in April 2023.

Therefore, even if MultiChoice and Canal+’s deal gets the green light from both a foreign ownership and competition perspective, it will take years to reach that point.

However, Jacobs said the companies are working with CompCom and the Independent Communications Authority of South Africa (ICASA) to streamline the process and try to close the deal as quickly as possible.

“We don’t think that we need to do any approvals through ICASA, but we are in discussions with them to bring them along the journey and make sure that that their understanding and our understanding are the same,” he said. 

“So, we’re basically working with with both sets of regulators at the moment and just making sure that that everyone is comfortable with what we’re doing.”

Regardless, until this deal is approved or rejected, MultiChoice will need to ensure that its financial position is more sustainable than shown in these latest results since its lifeline may take years to arrive.

This article was originally published by Daily Investor 

MultiChoice Working On Getting Deal With Canal+ Approved

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 MultiChoice Chief Executive Officer Calvo Mawela is preparing to take on US streaming giants as the African TV company works to get its approximately $3 billion deal with Vivendi SE’s Canal+ over the line with regulators. 

“A combination gives us a better chance to compete against the global giants,” Mawela said in an interview with Bloomberg TV. “Scale matters in this industry, then you are able to negotiate better rates for content and you are able to generate more revenues, especially with one party operating in French-speaking Africa and one in the English speaking part of Africa.” 

The company has been losing subscribers and struggling with currency depreciation across many of its markets, especially Nigeria, that’s hitting profits and customers’ spending power. A deal with France’s Canal+ would help scale a combined entity to better compete for content and technology needed when going up against dominant platforms like Netflix Inc. and Amazon.com Inc., Mawela said. 

While the companies have been in talks with regulators in South Africa, where local ownership rules may prove to be a serious regulatory hurdle to the deal, the French broadcaster has continued to slowly up its stake in MultiChoice. 

“We put something together that should be acceptable for the regulators, and engagements are ongoing,” he said. “We believe it’s a good story for Africa.”

Africa has a young and fast-growing population that’s an attractive market for streamers, although the continent also struggles with uneven internet access, low incomes and currency volatility. A combination of Canal+ and MultiChoice would create a group with nearly 50 million subscribers and the resources to invest more in local content and sports. 

Multichoice is already working with Canal+ on new productions and the South African company, known for its sports content, is providing its partner with access to English Premier League football matches, said Mawela. The company hopes to boost its sales to $1 billion from its Showmax service in the next five years, he said.

French billionaire Vincent Bolloré’s Vivendi is the a process of breaking up his sprawling media and entertainment empire, and Canal+ is actively preparing its own listing in London. The newly spun-off company may also have a secondary listing in Johannesburg. 

Could Canal+'s Potential Listing On JSE Have Any Implications On MultiChoice?

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As some readers are aware, Canal+ is currently finalizing their transaction with MultiChoice after the independent board within the company accepted their transaction to acquire remaining shares of the company. Vivendi, which serves as the parent company to the French broadcaster is looking to divest from the brand by the end of 2024.

Canal+ had promised MultiChoice shareholders an opportunity to invest in the combined entity if their transaction is approved by local legislation before the split occurs. Basically shareholders will be given an opportunity to make more money outside of the Randburg based company which does bring up another agenda - MultiChoice.

If shareholders are able to invest this combined entity with a secondary listing how is one sure that the current structure of MultiChoice will be preserved. Aside from DStv, there's also gambling (BetKing), insurance (NMIS Insurance), streaming (Showmax) and cybersecurity (Namola) and as we all know they're technically insolvent.

Let's say they do end up getting their money's worth through this secondary listing and similar to what Naspers did with MultiChoice by given them an independent listing on the JSE. Whose to say that these investors won't want to reduce their losses.

Canal+ is acquiring MultiChoice and this secondary listing could as well be one way to align M-Net, SuperSport and DStv to the services of its pay-tv operations in other countries as well as StudioCanal. They made it evident since this transaction came forward that they're putting their focus towards content.

Shareholders being investors in the combined entity I doubt they'd object to a merger as Canal+ is putting 45% of their investment towards MultiChoice and also shareholders are making money which is the whole point to all this. 

Die Agentskap 2nd December 12PM

MultiChoice Facing Challenging Period Ahead Of Canal+ Takeover

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South Africa’s MultiChoice Group, itself now considerably under the influence of Canal+, has admitted it is facing financial headwinds. It will publish its full numbers on November 12th, but in a trading update issued on November 7th it said it has moved from a profit at the same time last year to a loss now.

The first half of the 2025 financial year, it said, was “negatively impacted by severe pressure in the macroeconomic, foreign exchange rate and consumer environment in key markets, most notably Nigeria and Zambia”. Those headwinds include the pay-TV streaming efforts of Netflix, Prime Video and other on-demand rivals.

MultiChoice, which owns the DStv portfolio of channels as well as SuperSport and Showmax options, described the operating environment as “the most challenging” in the group’s history. Adding to the financial pressures is the huge investment the group has made – and continues to make – in Showmax, its streaming competitor.

“MultiChoice has entered the peak investment cycle of Showmax and expects losses and headline losses per share to increase as a result of the early life cycle of the Showmax business,” it said in the trading update.

Canal+ currently owns a 45.2 per cent stake in MultiChoice and will take full control once the take-over is approved. and is backing the plan to use a combined MultiChoice/Canal+ to create a programming power-house for Africa and beyond.

Canal+ and MultiChoice made a joint ‘merger control filing’ to South Africa’s Competition Commission in October and are discussing the merger with the country’s Independent Communications Authority of South Africa (ICASA) and other regulatory authorities.

The article was originally published by Advanced Television

Disney And Canal+ Remain Silent About French Overseas Territories Following The Upcoming Closure Of Disney Channels

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Not long ago, it was reported that Disney would be axing their last remaining linear offering in France with Disney Channel And Disney Junior set to go dark on the platform by 31 December 2024. After the French broadcaster became the exclusive home to Marvel, Star Wars and Pixar will now be integrated with Disney+.

Aside from France, Disney also managed the feeds for consumers in Belgium, Luxembourg, Switzerland, Andorra, Haiti and Francophone Africa. With their fate being left up in the air, these territories are most likely to lose their channels seeing as they're all conjoined.

Another scenario which could be similar to what was seen in Middle East and North Africa is that these remaining French territories will likely be merged with Europe, Middle East and Africa (EMEA). I think the question would have to be whether any French audio track will be provided if that was the case.

Kind of interesting is that MultiChoice who also offer Disney+ and the remaining linear offering in a separate agreement in Anglophone Africa is also in the process of being acquired by the French broadcaster. Basically, Canal+ would still have control over what the media consumes but in another territory.

Vivendi Board Gives Go-Ahead For Business Split & Sets December Shareholder Vote; Former Paramount CEO Bob Bakish To Join Canal+ Board

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Vivendi‘s plan to split its business in three has gotten board approval and will be taken to a shareholder vote on December 9. Should it go ahead, former Paramount Global CEO Bob Bakish will take a seat on the Canal+ board.

The board has approved the resolutions that will be submitted to shareholders to vote on whether Canal+, ad business Havas and publishing house Louis Hachette Group should separate.

Should the demerger go ahead, Canal+ will begin trading with debts of €400M ($433M) and have a corporate team led by Yannick Bolloré, Chairman of the Supervisory Board, and Maxime Saada, Chairman of the Management Board and CEO. Jacques du Puy and Anna Marsh will both be Deputy CEO, and Amandine Ferré will be CFO.

Board members will include Bolloré, Arnaud de Puyfontaine and, intriguingly, U.S. entertainment veteran Bakish, who has been lying low since his exit as CEO of Paramount earlier this year in April. Bakish will comprise one of eight independent members on the 12-strong board.

The Canal+ and Louis Hachette elements of the split will require two-thirds majorities, while the Netherlands-based Havas part will just need a majority. This is due to the changes that will impact the corporate structures of the different businesses.

Should the plan get shareholder approval, the three businesses would begin trading separately on December 16. Each individual stake owner would see shares allotted on a one-to-one bases. In effect, each Vivendi shareholder who participates in the spin-off will receive one Canal+ share, one Havas share and one Louis Hachette Group share, while retaining their Vivendi share.

Under the new structure, Canal+ would be listed in the UK, Havas in the Netherlands and Louis Hachette on Euronext. Each company would operate separately with a “decision-making center of their activities, as well as their operational teams, in France.” Vivendi would remain on Euronext Paris.

Vivendi And Canal+ Split Set To Be Finalised By Year End

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The separation of Canal+ from Vivendi could happen before the end of 2024 after it announced a shareholder’s meeting for 9 December to vote on the plan.

In a statement Vivendi said that Yannick Bolloré had taken note of concerns raised by employee representatives in response to the last December’s feasibity study.

The study was launched amid concern that following the listing of Universal Music Group in 2021 the valuation of the French media giant was suffering. 

Under the plans Canal+ would remain a company incorporated and taxed in France. There is also the possibility of a secondary listing on the Johannesburg stock market, depending on the success of its public tender offer for MultiChoice.

Havas, with the majority of its activities being carried out internationally, would be listed as a Dutch public limited liability company (NV) on the Euronext Amsterdam stock exchange, where Universal Music Group has already been listed. 

A newly named company, Louis Hachette Group, would bring together the assets owned by Vivendi in publishing and distribution, and be listed on Euronext Paris.

Vivendi plans to remain a leading player within the creative and entertainment industries, also listed on Euronext Paris. Vivendi would continue to develop Gameloft and actively manage a portfolio of investments, among them Universal Music Group. It would also provide a number of services to the three companies.

Decisions from the relevant market authorities are expected over the next few days.

Canal+'s Offer For MultiChoice Remains Unchanged As The Company Pivots Toward Streaming

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Last month, it was reported that the French broadcaster Canal+ and MultiChoice have begun engaging with local legislation regarding the change in ownership. As part of the agreement, Canal+ would maintain a 45% hold of the company while the remaining 55% goes to various shareholders at MultiChoice.

With its current stake, Canal+ is opting to put all its focus on DStv, GOtv, M-Net and SuperSport as mentioned by the brand's CEO a couple months back. This led MultiChoice to make Sanlam a majority shareholder in their insurance company while others like Irdeto and Namola will probably survive as little investment goes into their operation.

Both these companies are seeking to comply with government's cap to foreign ownership and this could lead to MultiChoice giving Canal+ it's ROA business which is home to brands like Africa Magic and Pearl Magic. As Canal+ seeks local partners to manage the licenses of DStv in South Africa.

MultiChoice SA is putting all their focus on Showmax as their consumer base on DStv plummets hoping to extend its reach to 50 million households by 2028. It's likely that Canal+ will manage their pay-tv operations and serve as a collaborator of some sort to Showmax.

Ideally, it doesn't really seem impossible for them to own these platforms rather than the bulk of channels under their belt which include SABC News and Moja Love as the license holder would be in charge of those brands. If anything, one could imagine Showmax getting spun off into a standalone company.

Right now, neither MultiChoice SA or Showmax can survive without the income coming from DStv which is why they're hoping to skyrocket the number of platforms for the streamer. Although subscriber numbers have yet to be unveiled it has been estimated that Showmax has around 500000 to 3 million subscribers.