Another Company Set To Take Over Multichoice As FG Begins Investigation Of DStv, GOtv Price Hike
- There is now a six-month extension on the deadline for Canal+ to acquire MultiChoice, a South African pay-TV broadcaster
- This delay allows authorities more time to authorise the acquisition, which is regarded as an essential part of Canal+'s expansion plan
- Canal+ shares have fallen 40% after going public on the London stock exchange in mid-December, suggesting that the deal has run into problems
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
The deadline for Canal+'s acquisition of MultiChoice, a pay-TV broadcaster in South Africa, has been extended by six months, from April 8, 2025 to October 8, 2025.
This postponement gives regulators more time to approve the purchase, which is considered a crucial component of Canal+'s growth strategy in Africa, especially in English-speaking regions, after the company's December split from Vivendi.
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However, since its launch on the London stock exchange in mid-December 2024, Canal+ shares have dropped 40%, indicating that the deal has encountered difficulties.
Despite this obstacle, Canal+ is optimistic that the purchase will conclude in the allotted time, pointing out that regulatory clearances in South Africa frequently occur during these periods.
Maxime Saada, the CEO of the company, expressed confidence in the deal's successful conclusion and the company's ongoing efforts to bring it to a close.
Although the recent closure of its free-to-air channel C8 in France and the termination of important third-party contracts, including one with Disney, may restrain development, Canal+ expects revenue to increase this year.
Originally established in France as a subscription TV channel in 1984, Canal+ is currently developing into a global content platform with the goal of reaching 100 million subscribers.
There are currently 26.93 million users overall, including 9.69 million in Africa and Asia and 17.24 million in Europe. Eighty percent of Canal+'s income comes from subscription fees, and the Paddington movie series and other cinematic material are a major source of subscriber engagement through the company's Studiocanal division.
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Direct-to-consumer users, who currently account for 19.9 million of the company's overall subscriber base, are also being given priority over wholesale channels, which account for 7 million.
Meanwhile, this is coming after the House of Representatives requested that MultiChoice Nigeria halt the increase in DStv and GOtv package subscription costs.
The Cable reported that after a motion of urgent public interest, sponsored by Edo state lawmaker Esosa Lyawe, was adopted, the lower legislative house passed the resolution in a plenary session.
MultiChoice had earlier announced a pricing hike for its DStv and GOtv subscriptions on February 24.
Nigerians propose the encouragement of more competitors in the sector in order to drive price war.
Uche Nwachuku said,
"These guys (Multichoice) are lucky because they don't have big competitor threatening their business. If Nigeria can encourage more players in the state, I believe that this would naturally make them bring down price."
FCCPC rejects increase in subscription prices of DStv, GOtv
Legit.ng earlier reported that the Federal Competition and Consumer Protection Commission (FCCPC) asked MultiChoice Nigeria to maintain the current DStv and GOtv subscription prices pending an investigation into the proposed price increase.
On February 24, 2025, the PayTV company officially announced another increase in subscription prices for its GOtv and DStv channels.
The development came almost one year after the company hiked its subscription rates.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
