Canal+ Extends MultiChoice Acquisition Deadline Amid Regulatory Roadblocks

Canal+, the French media conglomerate, has postponed the finalization of its acquisition of South Africa’s leading pay-TV broadcaster, MultiChoice, by six months, setting a new target date of October 8, 2025. The extension is due to ongoing regulatory approval challenges that remain unresolved.

The delay is attributed to South Africa’s stringent Electronic Communications Act (ECA), which limits foreign ownership in the broadcasting sector to a maximum of 20%. This regulatory hurdle complicates Canal+’s efforts to incorporate MultiChoice into its expanding African media portfolio.

To address these challenges, Canal+ and MultiChoice have formulated a strategic restructuring plan to comply with South African law. A key component of this plan is the creation of a new entity, ‘LicenceCo,’ which will hold the broadcasting license. LicenceCo is structured to maintain compliance with the ECA by ensuring that the majority ownership rests with historically disadvantaged South Africans. The ownership framework will include stakeholders such as Phuthuma Nathi, Identity Partners Itai Consortium, Afrifund Consortium, and a Workers’ Trust, all dedicated to fostering inclusivity in the broadcasting sector.

Under the proposed arrangement, MultiChoice Group will maintain a 49% economic stake in LicenceCo, along with 20% voting rights. This setup is designed to align with South Africa’s Broad-Based Black Economic Empowerment (BBBEE) standards, which seek to redress historical inequalities and promote economic inclusion.

Despite the acquisition delay, MultiChoice continues to thrive in its key markets, offering services such as DStv and GOtv to its extensive African subscriber base. The company remains committed to adapting to evolving media consumption trends, investing in digital expansion initiatives like its streaming platform Showmax to enhance viewer engagement and sustain market growth.