French media company Canal+ has increased its stake in MultiChoice, the parent company of DStv and GOtv.
According to My Broadband, the latest round of acquisition takes Canal+’s shares in the South African company to 20.21%
Canal+, the pay-TV unit of French media holding company Vivendi, started its streak of acquisitions in October 2020 when it acquired 6.5% of MultiChoice shares in the open market. Since then, the company has continued to make regular increases to its stake.
MultiChoice CEO, Calvo Mawela, said they continue to have monthly interactions with Vivendi and that the French media company likes MultiChoice, its management, and its prospects.
Mawela said their relationship with Canal+ is growing, and they are working together on many products, including content co-productions and sub-licensing content.
MultiChoice Africa and Canal+ are a natural fit with many synergies which could unlock value for both companies, according to Richard Cheesman, a senior investment analyst at Protea Capital Management.
Merging Canal+ and MultiChoice Africa’s subscriber bases will give a new entity better negotiation rights on satellite costs, rights on sports and movie rights, and channel distribution agreements.
Combining Canal+ and MultiChoice Africa’s advertising sales teams will also extend their reach and improve efficiency. A combined advertising offering reaching most countries on the continent will appeal to many global and African brands. MultiChoice’s expertise in online streaming—DStv Now and Showmax—can also assist Canal+ in its online endeavours.
According to Cheesman, a deal with Canal+ could help unlock MultiChoice Africa’s value faster than it will happen under MultiChoice. MultiChoice has been loss-making for years, and although it is targeting an even break in the next financial year, it is likely to happen quicker in partnership with Canal+.
