Another Company Acquires MultiChoice, Owner of DStv, GOtv, in Mega Deal, Makes Promises
- After a long negotiation, Canal+ has acquired the remaining 55% of MultiChoice in a deal valued at $3 billion
- The deal now gives Canal+ full control of Africa’s largest pay-TV operator, owners of DStv and GOtv
- The mega deal has been approved by South Africa's Competition Tribunal, with several public interest conditions attached
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
French media giant Canal+ has received final regulatory approval to acquire MultiChoice Group, the South African pay-TV operator behind DStv and GOtv.
The deal is valued at 55 billion rand (about $3 billion), the companies announced on Wednesday, July 23.
Source: UGC
Multichoice sold to Canal+
The South African Competition Tribunal cleared the way for Canal+ to acquire the remaining 55% stake in MultiChoice, enabling the French company to proceed with the takeover by October 8, 2025.
Reuters reports that the deal is transformative for Canal+ as part of its expansion in Africa, particularly in English-speaking regions, while for MultiChoice, it will provide much-needed capital to support its local content and innovation.
Maxime Saada, CEO of CANAL+, said in a statement:
"The combined group will benefit from enhanced scale, greater exposure to high-growth markets and the ability to deliver meaningful synergies."
“I’m excited about the potential this transaction unlocks for all stakeholders."
TV giants struck a deal after long negotiations
Canal+, which currently operates in 25 African countries through 16 subsidiaries and serves eight million subscribers, said the acquisition will accelerate its ambition to grow to 50–100 million subscribers over the next few years, from 27 million currently.
MultiChoice, Africa’s largest pay-TV operator with 14.5 million subscribers across 50 sub-Saharan countries, includes premium content brands like SuperSport and the DStv satellite service.
The merger will combine Canal+’s French-language content with MultiChoice’s English and Portuguese offerings, creating what Saada described as “a true champion for Africa.”
The mandatory share offer of 125 rand per share values MultiChoice at roughly $3 billion (2.6 billion euros). Canal+, recently spun off from Vivendi, first made the offer in 2023.
Source: Getty Images
Details of the deal
The approval came with several public-interest conditions worth about 26 billion rand over three years and keeping MultiChoice’s headquarters in South Africa, Punch reports.
These include maintaining MultiChoice’s headquarters in South Africa and continued support for local content production.
The companies said in a joint statement.
"The package will maintain funding for South African general entertainment and sports content, providing local content creators with a strong foundation for future success."
Multichoice experiencing revenue, subscribers decline
For the fiscal year ending March 31, 2025, MultiChoice reported a 9% decline in revenue to approximately USD 2.87 billion, primarily due to an 11% drop in subscription income.
The company's recent financial results underscore the significant challenges facing the African pay-TV industry.
This downturn was exacerbated by macroeconomic pressures, including high inflation rates in key markets such as Nigeria, which led to a 44% depreciation of the naira against the dollar, resulting in foreign exchange losses of USD 158.19 million.
Subscriber attrition also contributed to the revenue decline, with MultiChoice losing 1.2 million subscribers, bringing its total to 14.5 million.
The losses were evenly split between South Africa and the rest of Africa, reflecting widespread economic strain and shifting consumer preferences.
In response, MultiChoice has intensified its focus on digital platforms. Showmax, the company's streaming service, experienced a 44% year-on-year growth in active paying subscribers, bolstered by exclusive content deals and increased investment in local productions.
In addition, services like DStv Stream and DStv Internet saw significant subscriber and revenue growth, indicating a strategic pivot towards digital and broadband offerings.
In conclusion, while MultiChoice faces significant challenges in its traditional pay-TV segment, its strategic investments in digital platforms and potential acquisition by Canal+ may position the company for a more resilient future in the evolving African entertainment market.
DStv announces new smartphone games
Earlier, Legit.ng reported that there is a new gaming hub announced by Multichoice, which is within the MyDStv App, offering casual games.
Shows and sports broadcasts inspire the games introduced, and it is integrated with DStv rewards for subscribers.
According to MultiChoice, players are spending an average of 41 minutes per session, especially during primetime.
This article has been updated by the head of business desk, Victor Enengedi, with additional information.
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Source: Legit.ng
