French premium television channel; Canal+ has now doubled its stake in South African company; MultiChoice which operates DStv, a major satellite television service in Sub-Saharan Africa and GOtv, a smaller service that operates in numerous countries, and popular streaming service; Showmax which offers an assorted variety of award-winning TV shows, movies, documentaries, Showmax Originals, kids shows, sport and more to its users.
The move by Canal+ which is part of French Billionaire; Vincent Bolloré’s media conglomerate, is occurring at a time when both companies have entered into a collaboration for more african productions.
Canal+ which is also a broadcaster that is owned by French mass media holding company; Vivendi SE, has slowly acquired a number of shares overtime. It now owns a total of twenty six (26) percent of MultiChoice which is headquartered in Randburg, South Africa.
This is significantly higher than the fifteen (15) percent it controlled just a year ago. This is according to stock market filings that were revealed on the 14th of September 2022.
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In October of 2020 Canal+ first purchased a 6.5 percent stake in MultiChoice in a move that led market observers to believe a potential buyout was in the works.
Canal+ has described the share acquisition as a long term investment adding that both companies have collaborated on a number of African productions like Blood Psalms; a drama series that is based on pre colonial South African mythology.
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One major strategy that has set MultiChoice apart from other players in the market like Netflix, is its focus on African content.
French billionaire businessman; Vincent Bolloré has over the past couple of years, increased purchases of media outlets. It is believed that he is looking to create a Pay-TV and streaming conglomerate with the ultimate goal of being among the top five (5) paid content providers in the world by the end of the decade.
Canal+ has gradually began to intensify Africa as its focal point. It currently has MultiChoice as its foot in the door in the English speaking (Anglophone) parts of Africa and its very own Canal+ channels in the French speaking parts of Africa.
To further show its commitment to expanding on the African continent, it also recently rolled out a daily TV soap called; Le Futur est à nous.
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A Senior Analyst; John Davies who works at Bloomberg Intelligence stated that the acquisition of the MultiChoice shares look, “opportunistic and value-driven rather than presaging a takeover attempt.”
John Davies believes that South Africa’s regulators and laws regarding ownership of broadcasters by foreigners, might complicate an otherwise lucrative complete deal for the holder of rights to live sports. What this means is that as things stands, it is unlikely that a takeover will be approved.
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He added that a deeper partnership could result in, “modest financial benefits to MultiChoice.”
The entertainment company; MultiChoice has gained a total of 8.5 percent over the past twelve (12) months.
According to observers if Canal+ decided to buy anything from thirty five (35) percent or above in MultiChoice shares, it would result in a mandatory offer to shareholders being made.
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