SABC And e.TV Are Likely To Be Reliant On DStv As Millions Of Households Still Recieving Analogue Signals Will Be Left In The Dark

As some readers have been made aware, SABC 1-3 will be transitioning away from analogue TV on 31 December 2024 a process that had been delayed the government for more than a decade. They put up various banners addressing the situation with e.tv that has yet to do so as they opt to once again delay/scrap the switch off.

Several countries had already turned off their signals as this current method of watching TV has been deemed outdated for sometime. As you can rely on a smart TV for these channels and best part pick up additional channels even the likes of Openview and DStv can help combat this situation.

Trust me when I mention that the government should have never opted to delay the switch yes there was millions still reliant on their aerial but this problem could have lessened by 2024. MultiChoice was always accustomed to catering for a selection of consumers and now free-to-air operators will have to adjust to this current structure.

Having SABC 1's viewership minimised as some households will probably be watching SABC Sport or eReality and with MultiChoice having SuperSportBET, DStv Insurance and Namola to obtain some revenue. These operators are now going to have to find other means to recover this lost revenue.

If there's anyone that's going to suffer more from this it's the SABC while eMedia Investments went ahead and launched Openview ahead of the switch off were able to garner some income and grow their fanbase. Although SABC had followed similar routes with SABC Education and SABC Lehae on DTT very little income is being generated.

Now SABC is trying to make a DStv a cash cow by trying to make its parent company either pay for SABC 1-3 or help in collecting TV licence despite making R500 million in advertising. These are just ideas that have been in development hell for more than a decade alongside the rest of the public broadcaster.

This was something that TVWithThinus had mentioned from time and time again the government had failed the SABC. If it didn't SABC News wouldn't be financed by MultiChoice and I believe if they were more involved they would have tried improving the SABC's financial situation.

At this stage, the public broadcaster can't survive in its current structure without some financial backing maybe they could look into minimising the amount of local content on SABC 1. There's already DStv and a global player like Netflix even e.tv has increased its local investment in recent years.

If there's anyone that can survive in SABC's shoes it would be MultiChoice as consumers are paying for the content being viewed on Mzansi Magic and Moja Love alongside Netflix.

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 

Batman And Philosophy : The Dark Knight Of The Soul (PDF)

Riddle me this-- -- Does the Dark Knight always do right? -- Why doesn't Batman kill the joker? / Mark D. White -- Is it right to make a Robin? / James DiGiovanna -- Batman's virtuous hatred / Stephen Kershnar -- Law, justice, and the social order : where does Batman fit in? -- No man's land : social order in Gotham City and New Orleans / Brett Chandler Patterson -- Governing Gotham / Tony Spanakos -- The Joker's wild : can we hold the Clown Prince morally responsible? / Christopher Robichaud -- Origins and ethics : becoming the Caped Crusader -- Batman's promise / Randall M. Jensen -- Should Bruce Wayne have become Batman? / Mahesh Ananth and Ben Dixon -- What would Batman do? : Bruce Wayne as moral exemplar / Ryan Indy Rhodes and David Kyle Johnson -- Who is the Batman? (Is that a trick question?) -- Under the mask : how any person can become Batman / Sarah K. Donovan and Nicholas P. Richardson -- Could Batman have been the Joker? / Sam Cowling and Chris Ragg -- Batman's identity crisis and Wittgenstein's family resemblance / Jason Southworth -- What is it like to be a Batman? / Ron Novy -- Being the Bat : insights from existentialism and taoism -- Alfred, the Dark Knight of faith : Batman and Kierkegaard / Christopher M. Drohan -- Dark nights and the call of conscience / Jason J. Howard -- Batman's confrontation with death, angst, and freedom / David M. Hart -- Friend, father-- rival? : the many roles of the Bat -- Why Batman is better than Superman / Galen Foresman -- World's finest-- friends? : Batman, Superman, and the nature of friendship / Daniel P. Malloy -- Leaving the shadow of the Bat : Aristotle, Kant, and Dick Grayson on moral education / Carsten Fogh Nielsen -- The tao of the Bat / Bat-Tzu

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Batman: To Stalk A Specter (PDF)

Worried about the possible escape of the notorious Latin American drug lord they have captured, the leaders of Gotham City are relieved when Batman steps in to battle the drug lord's allies

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