Canal+ has no plans to change MultiChoice's brands post takeover

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June 11, 2024
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2 min read
Canal+
  • According to a report, Maxime Saada, chair and CEO of Canal+, the French media company acquiring MultiChoice, has outlined post-takeover plans.
  • Saada discussed the future of MultiChoice brands such as DStv and Showmax, stating that they will not be replaced by Canal+ due to their high brand value. He emphasised that these brands are valuable assets that should be preserved unless absolutely necessary.

“What is true is that we're only facing companies [like Netflix, Apple, etc.] that have one brand. And it makes them stronger. But if you ask me today, what would you do? You know, I would definitely not change the brands. They are very strong brands.”

According to the report, the MultiChoice board has also supported Canal+'s bid to take control of the company. This was confirmed during a meeting with journalists in Cape Town.

Earlier this month, MultiChoice and Canal+ issued a joint statement to shareholders announcing Canal+'s required offer to purchase the remaining shares of the South African broadcasting company at R125 per share, marking the next step in the Takeover Regulation Panel's (TRP) regulatory process.

Saada also highlighted key differences between Canal+ and MultiChoice, emphasising Canal+'s focus on content distribution over MultiChoice's focus on diversification. While Canal+ profits by concentrating on its core business, MultiChoice has ventured into various sectors such as home security, fintech, insurance, and betting.

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Canal+ also provides the same content across all platforms, as opposed to MultiChoice, which offers different streaming brands such as Showmax. Despite these differences, Saada acknowledged that MultiChoice's strategy might be correct, though he is unsure.

Canal+ increased its stake in MultiChoice from 35% to 40.8% by purchasing shares on the open market. The French media giant would have to pay more than R30 billion to acquire the remaining shares. If its stake exceeds 50%, the Competition Commission may look into the transaction.

Responding to shareholders' concerns about exceeding the 50% shareholding threshold, MultiChoice stated, “We do not envisage this happening as exceeding 50% ownership would amount to a merger under the Competition Act, which would require prior approval from the Competition Tribunal.”


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