SpringNewsNG: Another Company Set to Acquire MultiChoice as FG Probes DStv, GOtv Price Hike
The deadline for Canal+’s acquisition of MultiChoice, a leading pay-TV broadcaster in South Africa, has been extended by six months, moving from April 8, 2025, to October 8, 2025. This extension is intended to allow regulators more time to approve the purchase, which is seen as a key part of Canal+’s strategy to expand in Africa, particularly in English-speaking regions, following the company’s split from Vivendi in December 2024.
Despite this extension, Canal+ has faced hurdles, notably a 40% drop in its share price since listing on the London Stock Exchange in mid-December. However, the company remains optimistic about finalizing the acquisition within the given timeframe. Canal+ CEO Maxime Saada reaffirmed confidence in the deal, stating that regulatory approvals in South Africa usually take time but are expected to go through successfully.
While the acquisition remains a priority, Canal+ has also experienced challenges in other markets, including the recent closure of its free-to-air channel C8 in France and the termination of several key third-party content agreements, including one with Disney. Nonetheless, the company anticipates revenue growth in 2025. Originally founded in 1984 as a subscription TV channel in France, Canal+ has transformed into a global content platform, aiming to reach 100 million subscribers. Currently, the company boasts a total of 26.93 million users, with 9.69 million in Africa and Asia and 17.24 million in Europe. A significant portion—80%—of Canal+’s revenue comes from subscription fees, with popular content such as the Paddington movie series driving user engagement via its Studiocanal division.
As Canal+ focuses on expanding its direct-to-consumer subscriber base, which now accounts for 19.9 million of its total users compared to 7 million from wholesale channels, another issue has emerged in Nigeria. The House of Representatives has called for MultiChoice Nigeria to suspend its recent price hikes on DStv and GOtv packages.
The legislative body passed a resolution following a motion of urgent public interest sponsored by Edo State lawmaker Esosa Iyawe. The motion was adopted during a plenary session after MultiChoice Nigeria announced new subscription rates on February 24. Lawmakers argue that the price increase could impose further economic strain on consumers and have urged regulatory authorities to investigate the matter.
As the MultiChoice acquisition unfolds and the investigation into subscription price hikes continues, industry watchers await further developments that could reshape the African pay-TV landscape in the coming months.
