Canal+ took effective control of Africa’s biggest PayTV firm, MultiChoice Group and plans for the combined entity to be among the biggest media firms worldwide, its chief executive said.
“We have a target of 50 to 100 million subscribers in order to be one of the top five global entertainment companies in the world, and maybe the only non-American,” CEO and Group chair Maxime Saada said in an interview.
“There’s a lot of growth potential in Africa and other countries.”
The transaction has met all suspensive conditions, and South Africa’s Takeover Regulation Panel will issue a compliance certificate imminently, meaning the settlement process can start, the companies said in a statement on Monday.
The deal values MultiChoice at about $3 billion.
“The investment strategy is to be as big as possible,” Saada said, adding that the two firms currently spend about €5 billion ($5.9 billion) on content and as much as €2 billion on technology already. The combination “will enable us to invest more in local content and technology,” he said.
Canal+ has been buying up stock in the market since announcing its initial plan for a deal in 2024 and now owns 46% of shares.
With the transaction becoming unconditional, other shareholders will also be able to tender their shares.
Formed in South Africa in 1985, MultiChoice expanded across the continent in the early 1990s with packages including live English football matches and local shows.
The company was spun off from Naspers in 2019 and offers the French broadcaster access to additional markets on the continent, including South Africa, which has the continent’s biggest economy and film-making hub.
The newly formed entity could also list on the Johannesburg Stock Exchange.
The combined operation will create a group with more than 40 million subscribers and the resources to invest more in local content and sports.
The combined entity will likely provide a better view on the way forward in the first quarter of next year, Saada said.
BLOOMBERG