The African pay-TV sector is on the brink of a significant transformation as MultiChoice undertakes a comprehensive reorganisation of its South African business. This strategic move is designed to satisfy key conditions set by the Competition Tribunal, thereby enabling Vivendi Group-owned Canal+ to proceed with its R55-billion (approximately $3.17 billion) offer to acquire MultiChoice.

MultiChoice confirmed to shareholders that all necessary transactions to restructure its South Africa Holdings are now in place. This reorganisation involves the unbundling of MultiChoice’s local business, which will ultimately pave the way for Canal+ to secure full ownership of the group. Following the completion of this process, a new timeline for the mandatory offer to minority shareholders will be announced, marking the final stages of one of Africa’s most highly anticipated corporate deals.

Canal+ has steadily increased its stake in MultiChoice since early 2024, culminating in an offer of R125 per share for the Johannesburg-listed company. This acquisition is poised to substantially strengthen Canal+’s continental footprint in the pay-TV and streaming market, an arena where competition with global giants such as Netflix, Amazon Prime Video, and Disney+ is continually intensifying.

The takeover is expected to profoundly reshape Africa’s entertainment and media industry, leading to the creation of one of the continent’s most powerful broadcast and streaming networks. Central to this transformation will be MultiChoice’s video streaming arm, Showmax. Redesigned through a partnership with Comcast-owned NBCUniversal and Sky, Showmax currently offers a diverse mix of African local content, global dramas, and exclusive sports coverage. The capital injection from Canal+ is set to immensely boost Showmax’s content weaponry and technical capabilities.

This integration will enable Showmax to leverage Canal+’s extensive global content library and production capacity. The benefits will include the delivery of more localised African content, enhanced live sports coverage, and an improved viewing experience through advanced recommendation features, superior video quality, and seamless cross-device compatibility. These enhancements aim to position Showmax as a stronger challenger against its global competitors in the African market.

The agreement also aligns with MultiChoice’s broader vision to capitalise on Africa’s rapidly expanding digital economy. With internet penetration exceeding 40% in many of its core markets and accelerating smartphone adoption, there is a growing demand for affordable, mobile-based streaming services. MultiChoice plans to introduce more flexible payment plans, including weekly and daily options, to cater to price-sensitive consumers. Additionally, partnerships with telecom operators will facilitate bundled data packages, lowering the barrier to accessing streaming content.

Beyond content, the consolidation under Canal+ will allow MultiChoice to rationalise its operational model, reduce redundancies across various divisions, and strategically redirect resources towards innovation. A critical requirement imposed by the Competition Tribunal is the ring-fencing of MultiChoice’s South African operations. This ensures that domestic commitments to broadcasting within the country—such as free-to-air news, educational programming, and sport coverage—will continue to be met, even as the group expands its focus on digital growth across the continent.

Upon completion of the acquisition, MultiChoice will integrate into Canal+’s global network of media assets. This increased scale is expected to significantly enhance its bargaining power against studios, sports leagues, and technology companies, likely leading to lower content acquisition costs per subscriber and greater profitability. For African audiences, the impact could translate into a wider choice of quality programming, increased investment in local narratives, and improved streaming quality that keeps pace with international standards.

The ongoing reorganisation also coincides with the retirement of Cobus Stofberg, a co-founder of M-Net and MultiChoice, who dedicated 40 years to shaping Africa’s media landscape. Stofberg was instrumental in developing MultiChoice into a pan-African entertainment powerhouse, growing DStv from 70,000 to 350,000 subscribers within a year in the late 1990s and launching innovations like GOtv, Showmax, and DStv Stream. His leadership helped the company maintain its dominance, reaching 20.1 million subscribers across 50 African countries by 2020, even amidst economic pressures. His retirement signifies the close of an era as MultiChoice embarks on a new chapter under Canal+, making the current restructuring both symbolic and strategic for the group’s future direction.