Canal+'s MultiChoice Announces New Structure Should Acquisition Get Approval From Regulators

In an effort to get the acquisition by France’s Groupe Canal+ of MultiChoice Group over the line, the South African broadcaster and parent of DStv and Showmax has announced a plan to carve out its South African licensee into a new entity.

The move is designed to allow Canal+ to proceed with the acquisition of MultiChoice without falling foul of the Electronic Communications Act, which prohibits foreign entities from owning more than 20% of a South African broadcasting licensee. If it gets the go-ahead from regulators, new investors in the South African licensee will include former Telkom CEO Sipho Maseko’s Afrifund Investments and businesswoman Sonja de Bruyn’s Identity Partners.

In a joint statement by MultiChoice and Canal+ on Tuesday, the two broadcasters expressed confidence that their proposal will be approved by South African regulators.

Canal+ is offering R125/share in cash for the JSE-listed broadcaster that owns DStv, Showmax and SuperSport.

“MultiChoice Group will be restructured so that the current holder of the broadcasting licence in South Africa and the entity that contracts with South African subscribers, MultiChoice (Pty) Ltd, will be carved out of MultiChoice Group and will become an independent entity… The remainder of the group’s video entertainment assets will remain part of MultiChoice Group,” Canal+ and MultiChoice said in their joint statement.

The South African broadcast licence holder, called LicenceCo, will “continue to hold the subscription broadcasting licence in South Africa” and will continue to “contract with MultiChoice’s South African subscribers”. It will be majority owned by “historically disadvantaged persons”.

New shareholders

MultiChoice’s empowerment scheme, Phuthuma Nathi, will ultimately hold a 27% economic interest in the South African entity, while two black-owned and -managed companies, the Identity Partners Itai Consortium and the Afrifund Consortium, will invest in the business. A workers’ trust will also be established. Afrifund Investments was founded and is led by former Telkom CEO Maseko, while Identity Partners is headed by De Bruyn. TechCentral understands “Itai” refers to Itai Capital, founded by businessman Ernest Kwinda.

MultiChoice Group, which Canal+ intends acquiring, will have a 49% economic interest in the South African licence holder and a 20% share of the voting rights. This will allow Canal+ to deal with the legislation that prevents foreign entities from controlling more than 20% of a local broadcaster.

“MultiChoice Group will also retain its existing 75% direct interest in MultiChoice South Africa, which will exclude LicenceCo,” MultiChoice said. “Phuthuma Nathi will similarly retain its existing 25% interest in MultiChoice South Africa,” it added.

The broadcaster said:

LicenceCo will enter into various commercial agreements with MultiChoice Group subsidiaries in relation to the services currently provided to LicenceCo by other MultiChoice Group entities. “These relate to, among other things, the provision of content, technology, subscriber management, support and other functions.”

The transaction will not lead to any disruption for LicenceCo’s South African viewers, who will continue to access its services as normal. In time, those subscribers will benefit from the additional content and technology investments envisaged by the MultiChoice Group, in its capacity as supplier to LicenceCo.”

“Canal+ and MultiChoice are confident that the envisaged structure meets the requirements of all applicable laws, including the restrictions on foreign ownership and control of broadcasting licences contained in the Electronic Communications Act.” 

DStv Without DreamWorks Channel And Telemundo??? Comcast Unveils What Might Be The Future Of NBCUniversal Channels Following Spin-Off

Last year, Comcast made the announcement that most of its cable networks viewed on DStv such as Universal TV, E!, Studio Universal and Telemundo will form part of a standalone company under the working title SpinCo. The media has been trying to get more details about the spinoff but Comcast remains hush hush.

What is already known now is that MSNBC and CNBC will not undergo a name change of course that doesn't mean they won't make adjustments to the channel's offering or have corporate's logo exempted. MSNBC and CNBC after the spinoff would be rivalling with Comcast's NBC News so they would need to be some division. 

Even after Disney acquired FOX, they were still able to use the FOX Extended (FX) trademark with font and styling matching the former owners despite not being able to associate themselves with FOX. This does lead us to wonder whether Universal TV and Studio Universal will retain their trademarks.

In their earnings call, Comcast had mentioned that 98% of the viewing on Peacock does not include the spun networks. That's what's already seen with Universal TV and content wise it fits USA Network like a glove with the channel in Canada maybe SpinCo has expansion plans on the cards.

Of course, the fates of DreamWorks Channel and Telemundo Africa remain undecided cause if we're looking back on this statement about Peacock it's evident here that these two don't align with SpinCo. The only way I can see these two survive would be if MultiChoice in Africa or another company were to handle it's operations.

DreamWorks Channel was picked up by MultiChoice in Africa by 2023 offering award-winning shows and films based on Dragons, Shrek and The Croods. It would be damaging for the channel to get close like its American counterpart Universal Kids but Comcast has a history e.g. Style Network and G4.

It's not like the channel had first run programs it was more like 1Max where majority of its content is imported and licensed to other broadcasters. As much as I want to see DreamWorks Channel live through 2030, with the affects of streaming companies are scaling back so eventually we're all gonna kick the bucket.

As for Telemundo, this is a channel that is lagging behind rivals such as TelevisaUnivision's TLNovelas when it comes to content and reach. The channel has a following due to Lord Of The Skies, Nurses and My Heart Beats For Lola and is what inspired the launches of Zee World and now defunct Glow TV.

Comcast had promised that the spinoffs will fulfill whatever obligation is required and we can only assume that some of these brands will continue to operate in Africa. 

My best guess is Universal TV, E!, CNBC, MSNBC and Studio Universal will form part of SpinCo as it fits with their structure while DreamWorks Channel and Telemundo are over and out. Of course, Comcast can be regarded as a shareholder within MultiChoice particularly for its 30% stake in Showmax.

If anything, maybe the two could come to some agreement where fragments of both brands continue residing within DStv. I mean that what's already seen DreamWorks Channel's UK counterpart Sky Kids and this wouldn't be first time MultiChoice curates something on an IP e.g. WWE.

ICYMI: SuperSport Schools Was Apparently Set To Launch On SABC+ But That Got Delayed

As reported sometime ago, SuperSport Schools was set to announce a new partnership with the SABC but not giving too much notice put up a teaser. It didn't stop consumers to recognise the public broadcaster's through the letters and font incased in the picture with SuperSport Schools remaining hush.

The following day, this teaser was removed from their social platforms which left to some to wonder what was happening with this major announcement. It was confirmed that it got delayed and it's still not clear when we'll get clarity on this but I assume within February or before the end of March.

Of course, this didn't stop readers from snooping around and if you browse MultiChoice's corporate website the cat was kind of out the bag. SuperSport Schools is looking to extend its reach to SABC+, best part the streamer doesn't come with a monthly subscription.

SuperSport Schools had a dedicated app and YouTube channel so the only expense there as seen with SABC+ was data costs. This news doesn't surprise me as SABC had licensed numerous sporting events from SuperSport over the years (including Racing240) so it was only a matter of time.

If anything, it kind of begs the question with SABC looking to launch a decoder will SuperSport Schools perhaps form part of this offering alongside SABC 1-3, SABC Lehae, SABC Sports, SABC Variety and SABC Education. Another would be whether eMedia Investments could explore adding SuperSport Schools for consumers in Openview.

They already have The Home Channel+ and Zee One which are based on The Home Channel and Zee World offering on DStv or could select content from SuperSport Schools form part of the SABC. I mean the SABC had licensed content from SuperSport over the years so why should SuperSport Schools be any different.

Disney Channel To Debut New Series "Ayla And The Mirrors" In March 2025 For Viewers In Europe, Middle East And Africa

Disney Channel, an American based children's channel offering content for kids and tweens with a mixture of live-action and animated content has acquired rights to the series Ayla And The Mirrors. Known as Ayla Y Los Mirrors in Spain, the series will broadcast daily on Disney Channel at 17:00 CAT from 10 March.

Described as a coming of comedy series, the first season will comprises of 30 half hours episodes. It starred Liz Burnette, Violeta Madel, Daniela Monter, Cristian López, Camino Moreno, Israel Menéndez, Alicia Chojnowski, Selu Nieto, Mar Abascal and Anastasia Russo.

Synopsis for Ayla And The Mirrors

Ayla, a rich and spoiled girl, is orphaned after the unexpected death of her millionaire father. She suffers post-traumatic shock that leaves her without memories of her past. While the police try to find out her identity, she is sent to a shelter called El Bosque. There she meets Inés, her new roommate, and The Mirrors, a group of boys and girls from the center with a passion for dancing. 

With their help, Ayla finds her place and discovers a surprising ability: hearing the feelings of others through musical visions. But not everything will be so easy for Ayla. Her aunt Esmeralda keeps a close eye on her to make sure that the girl is not a threat to her newly inherited fortune.

TLNovelas To Debut New Series "Happily Ever After" In March 2025 Across Africa

TLNovelas, a Mexican based entertainment channel operated by TelevisaUnivision that distribute a variety of Portuguese telenovelas is set to rollout a new series titled Happily Ever After. Known in Mexico as Eternamente Amándonos, the series will commence on March 31st, 2025 replacing The Path Of Love once it ends.

Synopsis of Happily Ever After 

Paula Bernal and Rogelio Iturbide, two people with very different lives, instantly fall in love upon meeting and marry without letting Rogelio's family know, especially the matriarch of the family, Martina Rangel. When Paula arrives from Mexico City to the Iturbide's home, her lifestyle ideas clash with those of Martina, a manipulative woman accustomed to controlling her surroundings. Martina has sacrificed her happiness to follow the customs of Morelia society and, feeling threatened, declares a war on Paula.

Based on the Turkish drama İstanbullu Gelin, the series stars Diana Bracho, Marcus Ornellas and Alejandra Robles Gil in leading roles. Those residing in South Africa would be familiar with its premise as eMedia Investments acquired and dubbed its Turkish counterpart as Deur Dik En Dun.

Happily Ever After premiered on Las Estrellas from 27 February to 11 August 2023 with 120 half hour episodes having being filmed.

In other developments, Fernanda Colungo will be starring in Telemundo's newest addition in February, The Count: Love And Honor. This will be the channel's second adaptation from The Count Of Monte Cristo following the successful debut of The Boss in the 2010s which starred Aracley Arambula.