French media conglomerate bids $2.9 bn to acquire Multichoice

IN a move aimed at expanding its footprint in Africa’s burgeoning media market, French media conglomerate Vivendi’s Canal+ has officially tabled a $2.9 billion bid to acquire Multichoice, the owners of Dstv and Gotv, according to Reuters.

The proposal, presented on Monday, seeks to purchase shares at 125 rands ($6.7) each, pending approval from Multichoice’s independent board. If successful, this deal could significantly bolster Canal+’s presence in Africa, a continent boasting the world’s fastest-growing and youngest population demographic.

While negotiations are in the early stages, South African billionaire Pa trice Motsepe might join forces with Canal+ to facilitate the agreement. The need for a mandatory offer arose when Canal+, Multichoice’s largest shareholder, increased its stake in the company beyond the 35% threshold. With its new bid, Canal+ values Multichoice, in which it now holds a 36.6% stake, at approximately 55 billion rand, as per Reuters calculations.

The potential merger would establish a panafrican broadcasting powerhouse with over 31.5 million subscribers across 50 countries, enabling the dissemination of African content to global audiences and enhancing competitiveness on the international stage.

“A combined group would be better positioned to address key structural challenges and opportunities resulting from the progressive digitalisation and globalisation of the media and entertainment sector,” a statement from the company reads.

Canal+ boasts extensive reach in Frenchspeaking African nations, complementing Multichoice’s stronghold in English-speaking regions such as South Africa, Nigeria, and Kenya.

Both companies believe that Africa’s media and entertainment industry will witness significant transformations due to the rapid adoption of broadband and mobile internet, coupled with the rising prevalence of smartphone usage.