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

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

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

 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?

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

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

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

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

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

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.

MultiChoice's DStv And The SABC Are Becoming A Thing Of The Past

As some are aware, SABC and MultiChoice are on the brink of collapse as their financial woes continues to accelerate. The SABC find themselves having to use most of their income to pay expenses while MultiChoice is trying to find another money maker through Showmax as the pay-tv market deteriorates.

A financial transaction between Canal+ and MultiChoice is the only lifeline for the company so should this deal not move forward it could prove to be challenging to keep the company afloat. Aside from DStv, MultiChoice has other titles under their belt including M-Net, SuperSport, Showmax, Irdeto and Namola. 

As for the SABC, they've been grasping through straws relying on sponsors and other companies to manage the expenses for shows like The Masked Singer SA and Deal Or No Deal SA. Since then, they've been various proposals on how to get the company out of financial turmoil one includes a household levy with another a sale of assets.

While MultiChoice has gambling, cybersecurity and insurance the SABC only rivalled offering for the company is content which in recent years has been under threat. Before a large number of households relied on these companies for a portion of their lineup now there's Netflix, Amazon Prime Video and even TikTok.

Yes, TikTok has become another alternative from DStv and the SABC cause the reality is their lineup don't cater that much to Gen Z and Gen A as these consumers prefer the internet for their indulgence. DStv can say they offer Cocomelon but you get that on YouTube freely while there's a whole generation of viewers estranged to the SABC.

With Canal+ in pursuit of MultiChoice, I think the big question is how they'll be able to grow its value especially with its recent performance. Because of how cable is at this stage, a lot of investors would probably want out of this venture as seen already MultiChoice is eyeing Showmax to manage those losses in DStv consumption.

SABC is planning to introduce some cost cutting mechanisms although they haven't been detail oriented on how they'd go about it I presume one would have to deal with Deal Or No Deal SA which is funded by Primedia Studios. Another would be Muvhango cause after the show was cancelled only to be revived it's production budget was reduced.

Could DStv Be Closing Down In Some Countries?

A few months ago, it was revealed that both Canal+ and Bruh Entertainment PLC that launched a rival platform to StarTimes and DStv in Ethiopia back in 2021 will be closing down by 31 December 2024. This is due to the dominance of free-to-air operators in the region with the French broadcaster putting more focus on existing agreements with BeMedia.

This had led to further speculation that a similar fate could be awaiting DStv as Canal+ tries to completes it's acquisition of MultiChoice. Let's remember, Canal+ is also in pursuit of a rival pay-tv platform in Mauritius after increasing its hold in MC Vision to 75% which is awaiting regulatory approval as well.

Whenever there's a clash it always lead to one of the two getting closed if not sold which is what could be awaiting MultiChoice in the region. Canal+ could look into merging both DStv and MC Vision and build a localized feed as seen in South Africa with their broadcasting license limited to 20% needing local partners to have indirect influence over it's operations.

MultiChoice Africa hasn't been profitable in a long while and on top of massive layoffs Canal+ could as well look into minimizing the pay-tv company's presence in some markets. You'll find some like Mauritius offering MC Vision that could as well be the only reminisce of MultiChoice as they look to package certain brands on those platforms.

Then there could be an instance where MultiChoice follows a similar route as Sony Pictures Television and BBC Studios and explore partnerships to retain portions of DStv I mean the idea wouldn't seem far fetched a stretch. As Canal+ has adopted to similar mechanisms in the areas they reside being both content and pay-tv provider.

"The Bollore Effect": Could SABC News, eNCA And Newzroom Afrika Also Be Impacted By Canal+ Possible Takeover Of MultiChoice?

MultiChoice is technically insolvent a position in which the liabilities weigh more than their assets meaning the company won't be able to cover most of their expenses and could go bankrupt. So they're reliant on Canal+ transaction in order to remain afloat as they take the matter to legislation.

As some readers are aware, there was reports going around about the potential owners Canal+ and Vivendi that similar to MultiChoice would buy up shares in a company before staging a hostile takeover. But most of the attention was pointed toward the editorial staff and the effects this transaction had on them.

eMedia Investments' Openview and StarSat already package the French news channel France24 alongside MultiChoice's DStv in the Eastern and Western parts of Africa. This channel has been subjected to "editorial interference" or as the media would brand this situation "corporate bullying".

The owners in question would force a channel like France24 to express certain views about a topic and failure to abide by those policies would risk that individual their job. Corporate would go about hiring someone who is willing to follow guidelines which is why France24 looks the way it is now.

With Canal+ obtaining almost half of MultiChoice shares there's fear lurking around that SABC News, eNCA and Newzroom Afrika heading down a similar route. Although Canal+ wouldn't own these channels they would own MultiChoice which in turn owns France24 and would want to level the playing field.

With Canal+ already prioritizing C8 and BFM alongside France24 in Africa another fear surrounding these channels would be budget cuts. The first thing that will happen once the transaction concludes would be corporate downsizing with lower to upper management seeing cuts with branches closing down.

Various Changes Made By MultiChoice And Canal+ Ahead Of The Merger

Below is some of the developments that occurred during the takeover bid between MultiChoice and Canal+

Sanlam acquiring 60% stake in NMS Insurance Services 

A registered South African composite micro-insurer and authorised financial services provider, licensed to underwrite non-life and life insurance products. It has been writing insurance for the past 20 years under the DStv brand of MultiChoice, focusing on device, installation, funeral, subscription waiver, and debt waiver insurance products.

It had been outlined on several occasions that Canal+ is only focusing on core assets being DStv, GOtv, M-Net and SuperSport so it's no surprise that Sanlam would have acquired interest in NMS Insurance Services. With MultiChoice being financially constraint, they need funding in order to sustain their operations and the French doesn't want a hand in this.

Canal+ closing off its branch in Ethiopia 

After partnering up with Bruh Entertainment to launch a rivalled offering to MultiChoice's DStv in Ethiopia, the French broadcaster had announced its exit from the market by 31 December 2024. Since it's launch, the platform has built a local offering with Canal+ Gebeta, Canal+ Novelas and Canal+ Discover with international brands like FilmBox and NBA TV.

Canal+ serves as a dominant player in the French market while MultiChoice caters to the English speaking parts of Africa and these came with various clashes with Ethiopia being one of them. If anything, the question now focuses what fate awaits other rivalled offering in the stable such as ROK Studios and Africa Magic.

DStv losing channels

Within a year, MultiChoice has managed to have lost 12 channels which is the most the pay-tv platform has lost within a decade and only 1Magic was substituted by another TV channel, 1Max. Emmanuel TV, WildEarth, DW and likely PBS Kids had exited their platforms voluntarily meaning MultiChoice cut 8 channels like 1Magic, Me, People's Weather, B4U Movies, One Freestate Televisual, NWTV, Africa Magic Urban and Ginx TV.

MultiChoice hadn't been concrete with consumers on what led to the dismantling of these brands but from what WildEarth suggests it could have been a money problem. Earlier in the year, they were ranting on about how MultiChoice refused to pay for WildEarth despite promises to implement funding.

Let's remember throughout the year, they haven't added any new channels aside from 1Max and prior to takeovers companies tend to cutback.

The end of DStv Premiership 

A few months ago, it was reported that DStv would be cancelling their sponsorship for the PSL a year before it's expiration due to MultiChoice's financial problems which sent shockwaves. It had been alleged that a board member's exit from the company had led to them losing those rights as Betway replaces DStv as the official sponsor with SuperSport holding TV rights. 

Canal+ consolidates it's operations within three segments 

• Canal+ Europe – encompassing the Group’s subscription-TV (including OTT) and advertising-supported free-to-air (FTA) TV businesses across France, the French Overseas and adjacent territories, Poland, Central Europe and Benelux (through its wholly-owned subsidiary M7) as well as telecommunication services in the French Overseas territories;

• Canal+ Africa & Asia – encompassing the Group’s subscription-TV and advertising-supported FTA TV businesses, GVA and CanalOlympia venues across French-speaking Sub-Saharan Africa as well as subscription-TV business in Vietnam, Myanmar and Pacific territories, this is where MultiChoice would reside if given the greenlight;

• Content Production, Distribution and Other – encompassing Studiocanal, Dailymotion, Thema1 as well as L’Olympia and the L’Œuvre theater.

For more info: click here 

Canal+ And MultiChoice Have Filed A Merger Control Request With South African Legislation

The merger between CANAL+ and Multichoice continues. The two entities have just filed a joint application for merger control with legislation.

CANAL+ wants to absorb Multichoice in order to become the first pay broadcaster in Africa. The two entities have just informed investors of a new step in the process. 

One more step in the process 

On 30 September, CANAL+ and Multichoice filed a joint merger control application with the European Commission regarding the takeover bid. The South African authority has also been notified, as well as the other regulatory authorities. 

The project is seen as a "major merger" and in this case it requires the approval of the competition authority. The commission will have to examine the file and it will transmit its recommendations. 

Both companies will also continue to provide shareholders with updates on this matter. The terms and conditions previously discussed in the joint circular issued last June remain in effect and have not changed. 

The project is still moving forward and must therefore receive several more approvals in order to continue. It should therefore take several weeks before the merger is effective and CANAL+ takes full control of Multichoice. 

At the end of the transaction, the CANAL+ Group will gain more than 20 million additional subscribers, which will bring it closer to 50 million customers worldwide.

Canal+ Rwanda And Zacu TV Promise Fresh Entertainment With New Movies, Dubbing Hollywood Blockbusters

Since its launch in 2022 by the CANAL group, the country's leading pay TV provider, Zacu TV, a 100 per cent Kinyarwanda channel, quickly become one of the country's favourite entertainment channels, by offering a mix of locally produced movies, TV series, and international shows.

At the dawn of a new chapter with a focus on delivering high-quality content in the local language, Zacu TV on Channel 3, commits to fulfilling its foundational pledge and living up to its ambitions.

During a press conference, on Friday, September 27, as part of the back-to-school season, Cédric Pierre-Louis, the Director of Programming for African fiction channels at CANAL, announced exciting plans for Zacu TV's upcoming lineup starting from next year.

These include a variety of fresh entertainment offerings such as dubbing Hollywood blockbusters in Kinyarwanda for the first time, bringing back popular local series "Seburikoko" that have been on hiatus, and introducing new dramas and comedies.

Pierre-Louis added that "there will be something for everyone," ensuring that Zacu TV continues to cater to a larger number of Rwandans.

Among the new offerings are the comedy series "Shuwa Dilu" and the romantic drama "Kaliza wa Kalisa", which promise plenty of laughter and heartwarming chaos. Additionally, Zacu TV will co-produce musicals, including the upcoming TV series "Red Flag" and the feature movie "Fame is the Enemy", offering unforgettable and catchy songs that viewers can sing along to.

Another highlight is the introduction of dubbing. For the first time, some of the most popular Hollywood blockbusters from the last two decades will be available entirely in Kinyarwanda, courtesy of a partnership with one of Hollywood's biggest studios, Universal Studios. This move aims to make international entertainment more accessible to Rwandan audiences by presenting it in their native language.

He noted: "The combination of original stories from our slate of upcoming local productions and an outstanding roster of premium Hollywood blockbusters will bring endless entertainment to our viewers in 2025."

A golden opportunity for young talent

In 2025, Zacu TV aims to push the boundaries further by nurturing young filmmakers and exploring new genres, creating a golden opportunity for youth involvement.

Wilson Misago, the Director of Production and Acquisition for Zacu TV, explained that the channel is committed to providing a platform for Rwandan youth to tell their own stories, showcase their creativity and sleep not on their talents.

Among the new productions are "Hurts Harder" and "Red Flag", both TV series that explore the love stories, challenges, and dreams of Rwandan youth.

"We have so far employed more than 300 people, with plans to increase that number to up to 1,000. We're here to nurture young talents. However, they should seize this opportunity responsibly and not act in one movie and suddenly believe they are a star. That perspective cut short many talents. They need to stay focused on their goals," he said.

Yves Mizero, the director and producer of Hurts Harder, describes the movie as a story about Kate, a 27-year-old who never had a successful relationship but still believes in true love.

She meets Tate, a 28-year-old Ugandan, through an online platform, and after two years of communication, suggests they meet in person. Unwilling to meet in person, Tate hires another man to pose as himself, leading to a complex situation when Kate uncovers the truth, leaving her emotionally disappointed once again.

"This is a golden opportunity for young people to showcase their creativity and make a contribution in the Rwandan entertainment industry," said Mizero urging aspiring filmmakers to seize the opportunity provided by Zacu TV to tell local authentic stories that feed Rwandan audiences.

Introducing musicals to Rwandan cinema

Musicals are another genre that has yet to be fully explored in Rwandan cinema, but Zacu TV is set to change that. The TV series "Red Flag" and the feature film "Fame is the Enemy", starring popular musician Juno Kizigenza, will lead this exciting chapter into musical storytelling. These projects will feature original music and choreography that bring a fresh dimension to local entertainment.

Zacu TV continues to support Rwandan talent through its subsidiary studio, Zacu Entertainment. The company has built strong relationships with some of the country's most celebrated actors, including Gratien Niyitegeka, Longin Irunga, and Antoinette Uwamahoro, as well as rising stars like Gatesi Divine and Eric Nsabimana.

How DStv Will Be Impacted By Canal+?

Canal+ is currently finalizing a new structure after obtaining a 45% stake of MultiChoice making them one of company's largest shareholders. After their initial bid of R29 billion was turned down earlier in the year the French broadcaster had up it's bid to R32 billion with an interim board deeming it "fair and reasonable".

Something that various readers had asked me in the past months is how this impacts DStv and whether they could be any content changes once the takeover concludes by April 2025. Although, there's not much details about their plans with that platform even GOtv there is some differences between MultiChoice and Canal+.

Firstly, MultiChoice is content oriented this was seen when eNCA made less money than the former Gupta owned news channel ANN7 despite having more viewers. Then there's BBC Lifestyle, Food Network and HGTV all of which come with their own set of content for viewers.

Then you turn to Canal+ which operates in bulk or in large quantities as seen with Canal+ Sport and Foot alongside international brands Eurosport and DAZN. If you turn to their services within Africa similar to France and Europe, a large portion of their international offering isn't American so neither MultiChoice or viewers are familiar with the content there. 

There's FilmBox which is based in Netherlands alongside DocuBox followed by India's TravelXP, Asia's A+ Kids and Belgium's W-Sport.

Imagine once this takeover concludes what could as well transpire is some of these efforts Canal+ has built within Europe and France ends up being splashed onto DStv. Before any of that could enter fruition, Canal+ will look into making MultiChoice close a couple of channels as a means to increase profitability and reduce redundancy.

Take for instance the movie offering which has the most repeats amongst channels what MultiChoice could do here is focus more on IPs and that would be TNT, Studio Universal and Movie Room. With M-Net streamlining, they could as well scrap their remaining movie offering from M-Net Movies particularly M-Net Movies 3 and 4.

Then there's CineMagic and Magic Showcase with them being constrained to Easyview consumers in South Africa and Access and GOtv Lite consumers in other countries there's probably not much viewers meaning little to no income is being generated so what could transpire is a possible merger of this offering to enhance viewer's experience.

How MultiChoice Benefits From The Hostile Takeover By Canal+?

Canal+ has managed to have upped its stake in MultiChoice to 45% home to brands like SuperSport, M-Net, DStv and GOtv which is awaiting regulatory approval. With both parties that will be spending the rest of 2024 looking to assess a possible structure as Canal+ being a foreigner has to navigate the restrictions to foreign ownership.

The likely scenario here is that MultiChoice Africa will be managed by Canal+ with existing shareholders voting rights being reduced as they will be in charge of the services within South Africa. Residing within Kenya, Malawi and Nigeria, MultiChoice Africa offers brands such as Africa Magic, Zambezi Magic and Maisha Magic.

With Canal+ obtaining a 20% stake in MultiChoice South Africa which is the maximum amount a foreigner can get of a local company. It's possible that shareholders may look to increase Canal+ influence over MultiChoice Africa by 80% or at least on the content side.

Canal+ had outlined that they don't believe in the diversity of MultiChoice which consists of brands like Namola, Irdeto and BetKing. So with them handling the content portion of MultiChoice could free up some potential income for other shareholders to manage those other fields MultiChoice is hoping to cash on e.g. Showmax.

MultiChoice had been pumping funds onto SuperSport and with Canal+ still viewing linear TV as an asset we could see them manage part of the expenses giving them as much ownership of the brand. This was likely the most stressful of subsidiaries by MultiChoice and Canal+ would save them money. 

If anything, the burning question is how many of these subsidiaries MultiChoice will continue to operate under their wing cause with them complying with BEE those partners may not want to support some of these ventures leading some to potentially close if not getting sold off.

MultiChoice, NBCUniversal Invest R2.8 Billion Into Showmax

MultiChoice video streaming platform Showmax has received equity funding of $164 million (R2.8 billion), as it looks to take on international video-on-demand platforms such as Netflix and Disney+.

This, after in March last year, MultiChoice entered into an agreement with Comcast subsidiary NBCUniversal and Sky, to form a partnership for purposes of driving Showmax to become the “leading streaming service in Africa”.

Comcast, through its subsidiary NBCUniversal, acquired a 30% equity stake in Showmax, and provides ongoing support through the licensing of its Peacock platform and content from NBCUniversal, Universal Pictures, Peacock and Sky.

MultiChoice, through its wholly-owned subsidiary MultiChoice Group Holdings, and Comcast, through NBCUniversal, are providing funding to Showmax (only as and when Showmax’s board determines) during its investment phase.

According to MultiChoice, this is contributed in proportion to the companies’ respective shareholdings and they will share profits on the same basis in future.

It adds that equity funding is provided as required (either monthly or at other intervals) depending on Showmax’s working capital requirements and near-term budget (as determined by Showmax’s board) subject to a maximum capped amount.

As at 31 March 2024, MultiChoice Group and NBCUniversal provided, in the aggregate, $120 million (R2 billion) in equity funding to Showmax, each in proportion of their respective shareholdings.

“Since 1 April 2024 until the date of this announcement, MultiChoice Group and NBCUniversal provided, in the aggregate, $164 million (R2.8 billion) in equity funding to Showmax, each in proportion of their respective shareholdings,” says the JSE-listed video entertainment company.

Faced with declining subscriber numbers in the traditional pay-TV space, MultiChoice is pinning its hopes on streaming platforms Showmax and DStv Stream.

The company’s latest financial results show overall active subscribers declined by 9%.

According to the company, this was mainly due to a 13% decline in the “rest of Africa” business, with Nigeria, Angola and Zambia most affected, while the South African business was more resilient, declining by only 5%.

The results come as French-based media giant Canal+ is looking to take over the South African firm in a R30 billion deal.

Over the years, MultiChoice’s subscriber numbers have reduced amid pressure from global streaming services such as Netflix, Disney+ and Amazon Prime.

To boost its streaming offerings, MultiChoice relaunched Showmax, stating its intention of becoming the leading platform in Africa.

However, research projections show the new Showmax will become Africa’s second-biggest video streaming service in five years.

According to a report by Digital TV Research, Sub-Saharan Africa will have 16 million paying subscription video-on-demand (SVOD) subscriptions by 2029, up from seven million at the end of 2023.

It notes Netflix will remain the SVOD market leader, with 6.9 million subscribers by 2029, and Showmax will be the second-largest platform, with 3.7 million paying subscribers.

MultiChoice recently enhanced its DStv Stream app

 by adding personalisation features, which it believes will draw more viewers to the platform.

Could 1Max Be The Next Channel To Exit DStv And Could It Be Replaced With Another TV Channel?

Canal+ is currently finalizing a new structure after obtaining a 45% stake of MultiChoice making them one of company's largest shareholders. After their initial bid of R29 billion was turned down earlier in the year the French broadcaster had up it's bid to R32 billion with an interim board deeming it "fair and reasonable".

Following their visit to Cape Town, they were interviewed by several journalists regarding the transaction and several things were brought up first there are no plans to fold DStv under the Canal+ trademark considering how strong they are. However, DStv and Showmax may not compliment one another for very long as they deem it as competition.

Aside from NBCUniversal's stake in the streamer, Showmax has been buying up content that isn't viewable on DStv much less 1Max same goes for DStv as there's thing with Zee Zonke and TLNovelas. Look at Disney+, SABC+ and even eVOD their existence is based on their linear portfolio and vice versa at some point this was what Showmax was with DStv but growing competition led them to scale back.

With Canal+ eyeing a takeover on MultiChoice one has to sort of wonder whether the DStv threat could be minimised to a point where some restructure could await 1Max. The French broadcaster is currently trying to navigate the limitations of a foreign company within a local market so it's likely they may never own Mzansi Magic and KykNet and could opt to launch a rivalled offering.

1Max could be that channel in which Canal+ puts all their resources and connect to the SA market as they already cater to these audiences. Other than that, when M-Net decided to close both Me and 1Magic despite this being supplemented by 1Max it's availability had been restricted with the content filtered to favour South Africa. 

Canal+ also manages to maintain a stake in VIU which is eyeing 40% with the option to increase it with 51% and they had been commissioning content such as uBettina Wethu so whose to say this channel wouldn't serve as an open window to those pursuits. I think the question is how the content will be allocated on other packages do these fall under Mzansi Wethu or will this require another TV channel like Magic Showcase.

Canal+ Is Looking For Another BEE Partner To Finalize Acquisition Of MultiChoice

Canal+ is currently finalizing a new structure after obtaining a 45% stake of MultiChoice making them one of company's largest shareholders. After their initial bid of R29 billion was turned down earlier in the year the French broadcaster had up it's bid to R32 billion with an interim board deeming it "fair and reasonable".

Canal+ intends to keep MultiChoice listed in the JSE meaning they're not attempting a complete takeover and it was reported earlier in the year that Patrice Moshepe is also in the running to help finalize this acquisition. According to Africa Intelligence, the French broadcaster is looking for another business partner to finalize this acquisition.

This does lead some to wonder how much of a stake Patrice Moshepe is willing to invest in MultiChoice if some were to guess probably around 15%-30% based on the company's financial performance they are put in a position where they can declare bankruptcy and Canal+ is the only thing giving those shares value.

Canal+ is trying to comply with local legislation by capping their rights to DStv and Showmax at 20% and with the help of Patrice Moshepe they have indirect influence over the daily operations of those services. If Patrice Moshepe is investing a small stake he probably sees the same thing former shareholders Public sees in MultiChoice - a decline in value.

For years on end, several shareholders at MultiChoice were throwing away their shares looking to take their money elsewhere and most of these shares likely went under French hands. Their remaining partners Allan Gray and The Vanguard Group have a combined total of 7% with former partner Public Investment Corporation sitting at 11%.

One can only assume that when the acquisition is complete, Canal+ will look at cutting back at some of these ventures as MultiChoice is sitting with 10 and these include DStv, GOtv, Showmax, SuperSport and M-Net. So if they were looking to close/divest in something then it would have to be either Namola, Irdeto, BetKing.