Concern over economic control as Canal+ takes charge of Multichoice

French media giant Canal+ has finally completed its long-awaited $3 billion acquisition of South Africa’s Multichoice, expanding its presence across the continent.

The takeover raises concerns about the economic dependence and cultural stability of the continent.

France has played a key role in Africa’s socio-economic dependence crisis, with some critics accusing the former colonial leader of stifling efforts by especially the West African region to forge a stronger economic tie.

Over the years, Multichoice has played a major role in African cultural advancement through communication. There are fears that France could leverage the media giant to advance its already entrenched interests.

Multichoice has sent a formal notice to its teeming subscribers in Nigeria and other parts of Africa, saying the subscription and viewing remained the same. It noted that subscribers will continue to enjoy the same channels, shows and services and that they can keep using their decoder, remote and apps.

Further information noted that having now completed all “regulatory conditions,” Canal+ has taken “effective control” of Multichoice, making its purchase offer for all shares of the company it does not already own unconditional at ZAR125 ($7.1) per share.

Currently, Canal+ owns 46 per cent of Multichoice, with an additional 2.2 per cent set to come based on offer acceptances already tendered and further gains to be made now that the share offer is unconditional.

With the purchase comes a host of executive changes, most pressing being the presence of Calvo Mawela, the outgoing chief executive of Multichoice, who will remain as the chair of Canal+’s Africa business.

David Mignot, chief executive of Canal+ Africa since 2013, will remain in charge of the business unit post-merger, with Nicholas Dandoy continuing as chief financial officer of the unit and wider group chair and taking up the role of executive chair.

Jacques de Puy, the global head of pay-TV at Canal, also joins the Multichoice Group board alongside the three previous names, who, alongside five independent non-executive directors, will make up the executive level of the company going forward.

On the takeover, Canal+ CEO Maxime Saada, commented: “I am pleased we have delivered on a key part of the strategy we set out as we became a listed company in our own right last year, strengthening our position in the highest-growth payTV markets in the world – Africa – while continuing to deepen our leading position in Europe.

“We will be able to leverage the diverse talent that sits throughout the group to bring to life compelling local and international stories, both from our in-house production studio StudioCanal and global platforms, and the best national and global sports, all on a world-leading platform.”

Canal+ has said that the acquisition, the largest in the company’s history, means that the wider Canal+ Group spans across 70 countries with 40 million subscribers.

Africa alone accounts for 31 million subscribers, with Multichoice itself having boasted almost 22 million subscribers as of September 2023.

The MultiChoice business includes the DStv and SuperSport brands, while it also relaunched its Showmax streaming platform last year.

Canal Plus’ pan-African offering is centered around a number of Francophone sub-Saharan countries such as Mali and Senegal, while Multichoice operates across English-speaking nations such as South Africa, Nigeria, and Kenya.

Canal Plus, the largest single stakeholder in MultiChoice, first bought into the business in early 2020, aiming to create a consolidated media giant on the continent.

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