African television makes a fresh step with a new chapter unfolding
MultiChoice Sells to Canal+ for $2 Billion, Embracing Local Ownership and Content Investment
In a significant move for Africa's pay-TV and streaming markets, MultiChoice, the South African pay-TV giant, has agreed to sell its business to French media giant Canal+ for $2 billion [1][2]. The deal, approved by South Africa's Competition Tribunal in July 2025, will see MultiChoice restructuring and forming a new entity called LicenceCo.
LicenceCo will be majority-owned by Historically Disadvantaged Persons (HDPs) and workers, ensuring compliance with local ownership requirements [1][4]. The new company will hold the broadcasting licenses, a move that adheres to the Electronic Communications Act (ECA) regulations.
Canal+ has agreed to acquire MultiChoice at a 67% premium, with a $1.4 billion investment mandate over three years focused on local content, skills development, and support of HDP participation in the audiovisual sector [1][2]. This investment reflects a commitment to building a stronger and more diverse media landscape in South Africa.
The deal's conditions require no retrenchment of employees for three years and increased HDP participation in ownership and management [1][4]. To meet foreign ownership caps, 26% economic stakes and broadcasting licenses are transferred to LicenceCo, maintaining local control over broadcast operations.
The transaction will combine Canal+'s resources and content library with MultiChoice's substantial subscriber base of 19.3 million in sub-Saharan Africa and its streaming platform Showmax. The aim is to better compete with global streaming giants like Netflix [1][2][3][5].
The final transaction completion depends on approval from the Independent Communications Authority of South Africa (ICASA) for the license transfer to LicenceCo, due by October 8, 2025 [1][3]. The restructuring also includes shareholder stake conversions to Canal+ shares, preserving licensing integrity while empowering local stakeholders through LicenceCo [4].
This strategic move by Canal+ expands its presence beyond Francophone Africa into the larger Anglophone market with MultiChoice's established footprint, while adhering strictly to South African regulatory frameworks promoting local ownership and content investment [1][2][4][5].
As the media landscape evolves, companies are responding by being faster, sharper, and more user-centered, prioritising consumer control and local investment. This move by MultiChoice and Canal+ is a testament to this trend, aiming to provide a more diverse and inclusive media landscape in South Africa.
[1] "Canal+ to acquire MultiChoice in $2 billion deal", TechCentral, 1 July 2025. [Accessed 1 August 2025]. Available from: https://www.techcentral.co.za/canal-to-acquire-multichoice-in-2-billion-deal/
[2] "Canal+ to buy MultiChoice for $2 billion, subject to regulatory approvals", MyBroadband, 1 July 2025. [Accessed 1 August 2025]. Available from: https://mybroadband.co.za/news/broadcasting/420034-canal-to-buy-multichoice-for-2-billion-subject-to-regulatory-approvals.html
[3] "Canal+ to buy MultiChoice for $2 billion", Business Day, 1 July 2025. [Accessed 1 August 2025]. Available from: https://www.businesslive.co.za/bd/companies/2025-07-01-canal-to-buy-multichoice-for-2-billion/
[4] "Canal+ to buy MultiChoice for $2 billion, creating new entity LicenceCo", ITWeb, 1 July 2025. [Accessed 1 August 2025]. Available from: https://www.itweb.co.za/content/WvqN4QYl7Vr41L6
[5] "Canal+ to buy MultiChoice for $2 billion, focusing on local content and skills development", Fin24, 1 July 2025. [Accessed 1 August 2025]. Available from: https://www.fin24.com/Tech/canal-to-buy-multichoice-for-2-billion-focusing-on-local-content-and-skills-development-20250701
In the realm of business and finance, Canal+ has made a strategic move by acquiring MultiChoice for $2 billion, a deal that emphasizes local ownership and content investment in the African pay-TV and streaming markets. With this acquisition, the entertainment sector, including broadcasting, is expected to see significant transformation through the $1.4 billion investment mandate over three years towards local content, skills development, and HDP participation.
