The Competition Tribunal of South Africa has conditionally approved the acquisition of MultiChoice Group Limited by French media conglomerate Groupe Canal+ SAS, with a strong emphasis on job security and economic transformation.
- •The Tribunal approved Canal+’s acquisition of up to 100% of MultiChoice Group’s issued ordinary shares building on Canal+’s existing stake of over 45%.
- •The approval comes with a robust set of enforceable conditions aimed at protecting employment, promoting local ownership, and fostering development across the South African broadcasting sector.
- •Central to the Tribunal’s decision is a legally binding condition prohibiting any retrenchments of South African employees across Canal+, MultiChoice Group Limited, and MultiChoice (Pty) Ltd (referred to as “LicenceCo”) for a period of three years following the implementation of the merger.
In addition, the companies have committed that the merger will not negatively impact existing terms and conditions of employment for South African staff.
To comply with South African broadcasting regulations and promote broad-based black economic empowerment, the transaction includes the separation of MultiChoice Group’s broadcasting services arm, LicenceCo.
MultiChoice is a major player in African entertainment, providing video entertainment products and services through linear and streaming platforms in 50 countries across sub-Saharan Africa. It offers services like DStv, GOtv, and Showmax, reaching over 23.5 million households.
Macroeconomic strain, rising piracy, and growing competition from streaming and social media saw subscribers of Multichoice pay-TV services shrink to 14.5 million, with Kenya’s DSTV and Go-TV subscribers declining by 15%.
As a result, MultiChoice Group’s revenue fell by 9%, compounding additional factors like currency slippages and the exit of its insurance unit.
The falling subscription numbers can be attributed to the price hikes of its pay-TV packages in October last year, which followed the April hike and even prompted legal action in Nigeria.
Showmax, the group’s streaming platform, saw a 44% year-on-year increase in active paying users following a price adjustment in March.
“Active subscribers declined 7% YoY, with Nigeria accounting for over half of this decline. At year-end the customer base totalled 7.5 million similar to what was reported at the interim stage,” Multichoice said.
Despite these concerns, the Group has returned to profitability, reporting a net profit of over US$100 million for the year ended March 31, 2025.