Canal+ And PPF Considering Viaplay Takeover After Building Up Stake At Pay-TV Company

Canal+ and PPF are considering a joint move that would bring Viaplay into private ownership, according to a Bloomberg report.

The move would mark the next stage in the Nordic streaming group’s post-recapitalisation reshaping. The two companies already hold roughly 29.3% each of Viaplay following the Swedish broadcaster’s 2024 rescue recapitalisation, meaning they already control close to 60% of the company between them.  

Neither Canal+, PPF nor Viaplay has commented publicly on the report. Viaplay has spent the past two years rebuilding after its near-collapse, with Canal+ and PPF emerging as cornerstone shareholders through the SEK 4 billion (€0.36 billion) recapitalisation completed in early 2024.  

Any deal would come against a backdrop of a sharp recovery in Viaplay’s market value from distressed levels, even if the stock remains far below where it traded before the crisis. 

Viaplay’s footprint today centres on the Nordics, the Netherlands and Poland, while the company has been focusing on profitability and simplification. It withdrew from a number of territories, including the UK, where it sold the former Premier Sports business back to its original owners.

Its latest full-year results, published on 19 February, also reflected the acquisition of the remaining shares in Allente, underlining that the group is still in active portfolio and ownership transition.  

Viaplay, Another Cash Strapped Pay-TV Operator Canal+ May Look To Snatch Soon

Canal+ is currently in pursuit of MultiChoice after reaching the 35% threshold is looking to acquire full ownership and await regulatory approval from legislation. But MultiChoice may not be the only company the French broadcaster sinks its claws on as they currently hold a 29% stake of Viaplay.

Very much like MultiChoice, Viaplay is a Swedish pay-tv provider with roughly 6 million subscribers and has been a dominant force in Nordic market. Canal+ initially started it's bid at 12% before hiking it to 29% following a restructure which led it to exit US, UK and Baltics.

Under Swedish laws and the surrounding regions in which Viaplay operates, when a company reaches the 30% to 33% threshold they are required by law to acquire remaining shares (including minorities). Very much like South African laws where the threshold sits at 35%.

Unlike South Africa's strict foreign regulations which caps Canal+ at 20% there's no hurdles for them to obtain full ownership except for let's say PPF, a Czech Republic investment firm. They also have a 29% stake and could as well serve as an obstacle in their pursuit.

Similar to when Disney attempted to acquire Comcast's 30% stake in Hulu from time and time again. PPF may not make it easy for Canal+ they could retain their stake in the hopes for more money as Canal+ buys other shareholders or serve as a possible bidder with them also gobbling 29%.

If one had to guess when Canal+ will look to acquire Viaplay perhaps by the fall of 2025 to early 2026 as they set their sights on MultiChoice. It's likely that shareholders want Canal+ to finish it's MultiChoice acquisition before pursuing any other corporate takeovers.

As of September 2024, MultiChoice's foothold in Africa has been under siege with its consumer base that plummeted to 19 million. Initially residing in 24 million, combining it's reach with Canal+ would have the broadcaster reach its 50 million markup but a tie-up to Viaplay is the final piece they need right now.

Viaplay very much like MultiChoice has been in financial distress and have been reliant on investors (particularly Canal+) for stability. A takeover would help them minimise operation costs and bulk up against giants like Netflix who despite reaching 300 million households have its consumer base minimised in mentioned regions.