Patrice Motsepe, South Africa’s billionaire, is reportedly engaging in discussions with Vivendi SE’s Canal+ to bolster its bid for MultiChoice Group, South Africa’s leading pay-TV provider. These discussions come as Canal+ approaches the April 8 deadline to submit a formal buy offer for MultiChoice.
Canal+ has been steadily increasing its stake in MultiChoice, with its holdings rising to over 35% by February 2024. However, South African regulations impose limitations on foreign ownership of media companies, requiring compliance with stringent Black ownership requirements.
Motsepe’s potential involvement in the bid could assist Canal+ in meeting these ownership requirements. With an estimated net worth of $2.5 billion in 2024, Motsepe brings substantial financial backing and strategic insight to the table.
Canal+’s initial bid of R31.7 billion ($1.6 billion) for MultiChoice was rebuffed by the latter due to undervaluation. However, Canal+ has since increased its offer to $2.9 billion in March 2024, signaling its determination to acquire MultiChoice.
The acquisition aims to merge Canal+’s operations with MultiChoice, creating a media conglomerate with nearly 50 million subscribers. This move aligns with Canal+’s strategy to invest in local content and sports, leveraging MultiChoice’s platforms such as DStv and Showmax.
Meanwhile, MultiChoice’s recent success with Showmax, its streaming platform, has positioned it as a key player in Africa’s media landscape, capturing 40% of the market and surpassing competitors like Netflix.
Additionally, Canal+ has expanded its investment in African media with a recent stake acquisition in Senegal’s Marodi TV. This move underscores Canal+’s commitment to bolstering its presence in French-speaking Africa and diversifying its content offerings.
As negotiations continue and the deadline for the buy offer approaches, the partnership between Patrice Motsepe and Canal+ could significantly impact the outcome of the bid for MultiChoice, reshaping the future of Africa’s media industry.
