According to Yahoo Finance, Canal+ has submitted a formal bid for MultiChoice, valuing the African broadcaster at USD 2.9 billion, to extend its footprint across the continent. The decision to maintain a local listing is driven by the need to comply with South Africa’s stringent regulations on foreign media ownership, presenting a hurdle that Canal+ must overcome to finalise the acquisition.
“We are confident that we can address the foreign ownership topic, as we are present in 50 countries, and there are several countries where this type of rule is in place, including France,” said Maxime Saada, Canal+ Chief Executive Officer. Vivendi is devising a strategy to divide itself into four publicly traded entities, which will incorporate Canal+, to maximise the value of its assets following the listing of its premier business, Universal Music Group NV.
According to Saada, this initiative aims to enhance scale and purchasing capabilities, particularly in the competitive landscape for acquiring US content. “To extract value from that, and invest in African content and help it reach global audiences, it only makes sense to be part of a global company,” the CEO stated. Recently, Canal Plus proposed acquiring all outstanding shares in South Africa’s MultiChoice Group for approximately USD 1.7 billion. This move aimed to fortify Canal Plus’ position in the fiercely competitive global satellite TV market.
These developments highlight the growing significance of Africa as a key market for media and entertainment companies like Canal+ and Vivendi. The success of Canal+’s bid and Vivendi’s strategic reorganisation could reshape the landscape of the African media industry, driving increased investment in local content and facilitating its global reach.
