Canal+ completes $2bn MultiChoice takeover in South Africa

Canal+ completes $2bn MultiChoice takeover in South Africa after clearing all regulatory and shareholder approvals, cementing a landmark deal in the continent’s media sector. The long-awaited acquisition, declared unconditional on September 22, 2025, reshapes the South African media landscape and positions Canal+ as Africa’s largest pay-TV operator.

The final steps to completion

The $2 billion transaction had faced intense scrutiny because of South Africa’s broadcasting ownership rules. These regulations limit foreign companies to just 20% direct control of local broadcasting licences. To overcome this barrier, MultiChoice created a new entity called LicenceCo to hold its broadcasting licence.

Under this arrangement:

• MultiChoice retains 20% voting rights in LicenceCo.

• It also holds a 49% economic interest in the entity.

• The remaining ownership is distributed among historically disadvantaged persons (HDPs), Phuthuma Nathi (a long-standing empowerment partner), and the MultiChoice Workers Trust.

This innovative ownership model satisfied both the Independent Communications Authority of South Africa (ICASA) and the Competition Tribunal, ensuring that South African ownership and empowerment objectives were safeguarded while enabling foreign investment through Canal+.

Shareholder and employee benefits

One of the most notable outcomes of the Canal+ and MultiChoice deal is the direct benefit for shareholders and employees. MultiChoice announced an extraordinary dividend worth R1.375 billion, with portions allocated to Phuthuma Nathi and South African shareholders.

In addition, commitments were made to:

• Protect jobs across the company.

• Increase investment in local content creation.

• Broaden supplier diversity initiatives to empower small and medium South African businesses.

These measures were key to winning public trust, ensuring that the acquisition would not only reshape ownership but also support the domestic economy.

A continental media powerhouse

For Canal+, this takeover marks a significant leap. The French-owned group already had a strong presence in French-speaking Africa, while MultiChoice dominated English-speaking markets, particularly through platforms such as DStv and Showmax.

By merging these strengths, the deal creates a continental media powerhouse capable of reaching millions of households across Africa. This positions Canal+ to better compete against international streaming giants such as Netflix, Amazon Prime Video, and Disney+, all of which have expanded aggressively in Africa’s fast-growing digital entertainment market.

The combination also strengthens Showmax, MultiChoice’s own streaming service, which has been a critical tool in countering global competition. With Canal+ resources and expertise, Showmax is expected to scale further and enhance its original content library.

Regulatory compromise and industry shifts

The acquisition signals a broader transformation within the South Africa media industry. Regulators faced the challenge of balancing foreign investment with national broadcasting sovereignty.

By approving the Canal+ deal with structural adjustments like LicenceCo, regulators demonstrated flexibility while safeguarding local interests. This outcome reflects a shift in how African regulators are adapting to the realities of global media competition, recognizing that collaboration with international players can bring much-needed capital and expertise.

It also sets a precedent for future business expansion deals in South Africa’s tightly regulated industries, where empowerment, local ownership, and investment must coexist.

Strategic importance for Canal+

Jacques du Puy, CEO of Canal+, has been vocal about the strategic vision behind the acquisition. He highlighted that the merger would “strengthen Africa’s media landscape” and expand diverse content access to millions of viewers.

For Canal+, the deal secures:

• A stronger foothold in South Africa retail media distribution.

• Direct access to MultiChoice’s 21 million subscribers across 50 African markets.

• Enhanced opportunities for co-production of African content that can be distributed globally.

The acquisition also aligns Canal+ with Africa’s rising middle class, where demand for premium entertainment and reliable pay-TV services continues to grow.

MultiChoice’s perspective

From MultiChoice’s viewpoint, the takeover was framed as essential for long-term survival. The pay-TV operator has faced:

• Declining margins due to global streaming competition.

• Rising costs of sports broadcasting rights.

• Pressure to maintain affordability in price-sensitive African markets.

By joining forces with Canal+, MultiChoice gains stronger financial backing and global expertise to scale its operations and strengthen its competitive position.

What comes next

With the deal officially complete, the next phase involves integrating operations between Canal+ and MultiChoice. This will include:

• Harmonizing broadcasting technologies across French- and English-speaking markets.

• Expanding local and pan-African content production.

• Ensuring compliance with regulatory promises, such as job protections and local supplier partnerships.

Regulators and stakeholders are expected to monitor the rollout carefully to ensure commitments to consumer pricing stability, local content investment, and employment protection are met.

The bigger picture for Africa’s media industry

The Canal+ and MultiChoice consolidation comes at a critical moment for Africa’s media industry. With global giants aggressively expanding, regional players must strengthen their positions through mergers, partnerships, and innovation.

This deal not only creates the largest pay-TV operator in Africa but also signals how new ventures and foreign partnerships can coexist with national empowerment frameworks. It is a model that could inspire other African countries seeking to attract international investment without compromising sovereignty.

Conclusion

The landmark acquisition marks a turning point in South African and African media. Canal+ completes $2bn MultiChoice takeover in South Africa, creating a continental leader in pay-TV and streaming services.

By combining resources, expertise, and market presence, Canal+ and MultiChoice are better positioned to compete with global streaming services while delivering value to local consumers, shareholders, and employees.

This deal is not only about building a stronger company but about shaping the future of Africa’s media industry, balancing globalization with empowerment, and ensuring African voices remain central in global entertainment.