Canal+ Sets Sights on MultiChoice in $1.7 Billion Acquisition Bid

French media giant Canal+ is eyeing a whopping $1.7 billion acquisition of MultiChoice, a South African company.

They’re putting forward a tempting offer of $5.6 per share, which is 40% higher than MultiChoice’s recent closing share price. Interestingly, Canal+ already owns 31.7% of MultiChoice, navigating South African regulations on foreign ownership.

This move follows Comcast, NBCUniversal’s parent company, securing a 30% stake in MultiChoice in 2023. This paved the way for NBCUniversal’s Peacock streaming service to team up with the New Showmax platform.

However, there’s a potential hurdle as Canal+ might face regulatory challenges in South Africa, primarily due to the Electronic Communication Act of 2005.

This act limits foreign control of commercial broadcasting licences and ownership shares. Yet, whispers are suggesting South Africa might consider loosening these restrictions, with a proposed 49% increase in the limit on foreign ownership.

Canal+ remains optimistic, stating that a partnership with MultiChoice would lead to success and ensure a solid future for the company. 

On the other side, MultiChoice isn’t idle; the South African pay-TV provider plans to invest an additional $89 million into its streaming video platform, Showmax, by March 31, 2024.