Latest news with #LicenceCo
Daily Maverick
2 days ago
- Business
- Daily Maverick
Who will steer the R55bn marriage of MultiChoice and Canal+?
There's a new power couple in African media. After nearly five years of courting, Canal+ has finally put a ring on MultiChoice to form a pan-African content colossus with global ambitions. French media titan Canal+ has secured the final go-ahead to acquire MultiChoice in a landmark R55-billion deal. After years of quiet manoeuvring and regulatory hurdles, the merger is now a question of who controls what. The Competition Tribunal's conditional approval, granted late last week, closes the chapter on a five-year 'creeping takeover' and opens a new era in African broadcasting. Now it's a balancing act weighing foreign capital with national sovereignty on a digital scale with local content. Enter the media monarchy In return for its princely sum, Canal+, owned by the French conglomerate Vivendi, gets access to MultiChoice's 14.5 million Anglophone and Lusophone subscribers, the DStv powerhouse, sports juggernaut SuperSport, and a foothold in streaming via Showmax. MultiChoice, facing rising costs and subscriber declines, finds itself rescued by a suitor with deep pockets and pan-African ambition. Combined, the merged entity will serve more than 24 million subscribers across 50 countries — instantly becoming the largest pay-TV and streaming provider on the continent. However, if Canal+ was hoping for free access, South African regulators had other plans. The deal's approval came wrapped in layers of red tape — not as a deterrent, but as a deliberate design feature. Transformation goals Central to the regulatory conditions is the creation of LicenceCo, an independent company that will hold MultiChoice South Africa's broadcast licence. It will be majority-owned and controlled by historically disadvantaged South Africans and employees. Crucially, Canal+ has no control and no board seats. This structural firewall protects South Africa's legal requirements around media ownership, ensures transformation goals are met and serves as a template for foreign investment in other sensitive sectors. Phuthuma Nathi, the B-BBEE shareholder darling, increases its economic interest in LicenceCo to 27%, with a new employee trust added. The licence, and the local airwaves it governs, stay South African. The R30bn lobola The Competition Tribunal didn't just demand structural separation; it also extracted a commitment package valued at more than R30-billion. This includes: A three-year moratorium on retrenchments linked to the merger; Significant investment in local content production, sports broadcasting, SMME procurement and Corporate Social Investment programmes; Ongoing free-to-air broadcast access for key sporting events, safeguarding the public's ability to view major matches without a subscription; and Local skills development through Canal+'s 'University Programme', to train historically disadvantaged individuals in broadcasting and production. In a media environment where Netflix and Amazon Prime are increasingly dominant, this local-first approach is designed to future-proof South African media. Showmax, SuperSport and scale Behind the regulatory muscle lies a clear commercial imperative. MultiChoice has struggled in recent years, shedding 2.8 million linear subscribers and burning cash to prop up Showmax 2.0, its streaming reboot built on Comcast tech and bolstered by NBC Universal's 30% equity stake. Canal+ brings financial stability and scale. It also inherits Irdeto, MultiChoice's profitable cybersecurity unit, and Showmax's potential to become Africa's answer to global streamers. Vivendi, Canal+'s parent company, views this merger as critical to its own transformation and part of a plan to split into three listed entities, with Canal+ as its global growth engine. Listing Canal+ on the JSE within nine months of deal completion is a further nod to local inclusion, visibility, and capital market confidence. The shiny ring can't cover controversial holes While South Africa celebrates a structurally sound deal with tangible local benefits, not all observers are convinced. Critics warn that Canal+'s track record and the Bolloré Group's 30.4% stake in it come with baggage. Vivendi's past includes one of the largest corporate losses in history and regulatory infractions that still cast a shadow. Vincent Bolloré, the billionaire behind the curtain, faces corruption charges in France and has been accused of turning Canal+'s French media outlets into right-wing political mouthpieces. With Canal+ now embedded in South Africa's broadcasting ecosystem, some fear creeping influence over editorial independence, particularly if there are future attempts to deepen ownership or control beyond the current firewall. Marriage isn't buying a horse Mergers are easy to announce but hard to manage. However, the competition bodies have played their hand cleverly — extracting commitments, safeguarding jobs and setting a precedent for how global capital must behave when it enters South Africa's strategic sectors. The long-term test lies ahead. Can Showmax truly compete with Netflix? Can SuperSport keep its sports crown as global streamers outbid for rights? Will LicenceCo be a transformative force or a regulatory box-ticker? Will Canal+ respect the firewall, or try to chip away at it over time? The merged entity is now king of the hill in African broadcasting, but it's a kingdom that won't run on size alone. Trust, execution and transformation will be the currencies of success. DM
The Citizen
26-05-2025
- Business
- The Citizen
MultiChoice acquisition by French company: Go-ahead suggested but with 3-year halt on job cuts
MultiChoice acquisition by French company: Go-ahead suggested but with 3-year halt on job cuts The Competition Commission has recommended that the Competition Tribunal approve the proposed acquisition of MultiChoice by Groupe Canal+ SAS, subject to certain conditions such as halting any possible job losses because of the merger by three years. This recommendation comes after the commission's investigation into the large merger notification submitted last year on September 30. The investigation was launched to determine whether the merge will lessen or prevent competition in the concerned market. The commission, an agency of the of the Department of Trade, Industry and Competition, is one of three independent statutory bodies established in terms of the Competition Act to regulate competition between firms in the market. The proposed merger explained Canal+, along with its ultimate controllers and the companies they control (the acquiring group) is a French media and entertainment company involved in the production, commissioning, and supply of audiovisual content, the provision of advertising services, development of video games and publication of books. LicenceCo is a proposed company within the merged group, containing local license rights and subscribers, which will broadcast content through DStv. Meanwhile, the Target Group provides audiovisual content via its streaming service, Showmax. 'The commission is of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any market. Conditions recommended for merger 'However, in recognition of the important role played by the Target Group within the broader audiovisual ecosystem in South Africa, and to address public interest concerns raised by various stakeholders, the commission has recommended approval of the merger subject to a number of conditions,' the commission said. The conditions include, but are not limited to: addressing employment concerns, increasing the shareholding of historically disadvantaged persons (HDP) and workers in Orbicom and LicenceCo committing to supplier development, ensuring the merged entity continues to operate from South Africa, promoting a diversity of television news, and encouraging export activities. According to the commission, the parties involved in the merger have agreed to a three-year moratorium on layoffs following the merger implementation date. Involved parties commits to keeping MultiChoice in SA 'The merger parties have also committed that the majority of LicenceCo's shareholders will be HDPs and workers. Moreover, the parties have agreed to continue certain corporate social responsibility initiatives such as skills development in the audiovisual industry and sports development.' Canal+ has committed to ensuring that MultiChoice remains incorporated and headquartered in South Africa, promotes exports, and seeks a secondary inward listing on the Johannesburg Stock Exchange. The merged entity has also made supplier development commitments that include expenditure on local audiovisual content, the promotion of South African audiovisual content in new markets, and procurement from HDPs and small, medium and micro enterprises. 'Finally, the parties have agreed that LicenceCo will continue to procure local news content for DStv and will ensure the diversity of the news content it broadcasts.' Multi-billion rand value projected The total value of all the public interest commitments advanced by the merger parties based on past spend by MultiChoice is projected at a total amount of about R26b over the next three years. 'In large mergers, the commission is required to assess and to ultimately make a recommendation to the tribunal. The commission is satisfied that the conditions attached to this merger sufficiently address the concerns raised during the investigation. 'The matter is now before the tribunal for a final determination,' Deputy Commissioner Hardin Ratshisusu explained. – At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
