French broadcasting giant Canal+ has increased its stake in MultiChoice, a pan-African broadcaster, to 31.7%, sparking speculation of a potential takeover. South African law mandates that a shareholder must make an offer for a takeover when they reach a 35% stake in a listed entity. However, due to South African regulations limiting foreign ownership of local broadcasters to 20%, it is unlikely that Canal+ is attempting a complete takeover. Instead, it is believed that Canal+ wants to become the leading pay-TV provider across Africa by gaining access to anglophone markets through MultiChoice. MultiChoice is facing challenges with its DStv business model and aims to elevate its streaming service, Showmax, to compete with platforms like Netflix and Disney+. The company is also the sole holder of broadcasting rights to premium sporting content in Africa but faces the possibility of competition if other streaming services offer sports-only packages. MultiChoice and Canal+ are in regular engagement and are exploring areas of collaboration. The next step in this situation could involve MultiChoice selling some of its business to Canal+ or potential business mergers in specific market segments. The value and benefits for shareholders will depend on the conditions and structure of any acquisition or partnership.

Read more on TechCabal