Amanze Chinonye
MultiChoice Group has begun a sweeping reorganisation of its operations as French pay-TV giant Canal+ completed its $3 billion (about R55 billion) acquisition of Africa’s largest video-entertainment company.
The Johannesburg-listed broadcaster owner of DStv, GOtv and Showmax said the restructuring aims to “simplify the group structure, unlock shareholder value, and improve operational efficiency” amid rising competition from global streaming platforms and slowing subscriber growth.
In a filing to the Johannesburg Stock Exchange (JSE), MultiChoice explained that the plan includes “streamlining management layers, reviewing regional operations, and exploring synergies with strategic investors.” The company stressed that the exercise is designed to “position the group for sustainable growth in a rapidly evolving media landscape,” while assuring subscribers that day-to-day services will continue uninterrupted.
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The reorganisation follows Canal+’s July 2025 completion of its buyout of MultiChoice after months of negotiations and regulatory reviews. Canal+, a subsidiary of French media conglomerate Vivendi, now owns 100% of MultiChoice stock, giving it full economic control of DStv, GOtv and Showmax.
Before the buyout, Canal+ already held more than 45.2% of the company and had been steadily increasing its stake since 2020 as part of its Africa expansion strategy.
Canal+ described its investment as “a long-term strategic partnership aimed at building the leading African media company,” pledging to “work constructively with MultiChoice management to ensure continuity of operations and protect local content production.”
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Regulatory Hurdles and the ECA
The takeover faced significant legal and regulatory challenges under South Africa’s Electronic Communications Act (ECA), which limits foreign ownership of commercial broadcasting licence holders to 20% of voting shares.
Because MultiChoice holds key broadcasting licences, the deal required approval from the Independent Communications Authority of South Africa (ICASA) and the Competition Tribunal.
ICASA demanded detailed safeguards on local content quotas, employment protection and editorial independence. After months of public consultations and submissions, approval was granted in July 2025 on the condition that Canal+ maintain South African management control of licence operations and continue investing in local programming and African sports rights.
Complex Agreements to Secure the Deal
To satisfy the ECA and gain full economic ownership, MultiChoice entered into a series of subscription, share-repurchase and shareholders’ agreements with Canal+.
- Subscription agreements set the purchase price and timetable for acquiring all outstanding shares, subject to regulatory clearance.
- Share-repurchase agreements allowed MultiChoice to restructure certain voting shares so that licence-holding subsidiaries remain majority South African-owned, even as Canal+ gained economic control through a holding-company structure.
- Shareholders’ agreements defined governance rights for Canal+, local management obligations, and commitments to protect editorial independence, safeguard jobs and sustain local content production.
These mechanisms allowed the transaction to comply with South African law while giving Canal+ the financial and strategic control it sought.
Industry analysts say the takeover marks a pivotal moment for African media. Canal+ now gains unrivalled access to African sports rights, original content libraries and streaming infrastructure assets that could help it counter global rivals such as Netflix, Amazon Prime Video and Disney+.
The restructuring will be closely watched for its impact on Showmax, MultiChoice’s flagship streaming service, and whether the integration leads to new pricing models or pan-African content partnerships. Investors also anticipate updates on potential extraordinary dividends once the reorganisation is completed, though MultiChoice has yet to announce any payout.
MultiChoice has promised a full market update before year-end detailing the impact on employees, regional hubs and service delivery.
For now, both MultiChoice and Canal+ insist the shake-up will strengthen, not weaken, Africa’s home-grown media powerhouse, signalling a new era for pay-TV and streaming on the continent.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
