The news 

• Canal+ has extended its deadline for acquiring South Africa’s MultiChoice by six months.
• The delay is a result of South Africa’s Electronic Communications Act, which limits foreign ownership in broadcasting licenses.
• To navigate these restrictions, Canal+ and MultiChoice propose restructuring by creating ‘LicenceCo,’ a separate entity to hold the broadcasting license, with majority ownership by historically disadvantaged South Africans.

French media conglomerate Canal+ has announced a six-month extension to its planned acquisition of South African pay-TV broadcaster MultiChoice, shifting the anticipated completion date to October 8, 2025. This decision comes as regulatory approvals remain pending.

At the heart of the delay are stringent South African regulations governing foreign ownership in the broadcasting sector.

The Electronic Communications Act (ECA) imposes strict limitations, notably restricting foreign entities from holding more than 20% ownership in local broadcasting licenses. This presents a significant obstacle for Canal+, which seeks to integrate MultiChoice into its expanding African portfolio.

In response to these regulatory challenges, Canal+ and MultiChoice have proposed a strategic restructuring plan. The plan involves the creation of a new entity, ‘LicenceCo,’ which will hold the broadcasting license.

This entity is designed to comply with South African laws by ensuring majority ownership by historically disadvantaged individuals and groups, including stakeholders like Phuthuma Nathi, Identity Partners Itai Consortium, Afrifund Consortium, and a Workers’ Trust.

MultiChoice Group will retain a 49% economic interest and 20% voting rights in LicenceCo, aligning with Broad-Based Black Economic Empowerment (BBBEE) credentials.

While the acquisition process faces delays, MultiChoice continues to operate within its core markets. The company maintains a strong subscriber base across Africa, offering services like DStv and GOtv.

Recognising the shifting dynamics of media consumption, MultiChoice has been investing in digital platforms, including its streaming service Showmax, to cater to evolving viewer preferences. These initiatives aim to bolster its market position and appeal to a broader audience.

As the new October deadline approaches, all eyes are on the regulatory bodies whose approvals are pivotal for the acquisition’s fruition.

The proposed restructuring through LicenceCo is a strategic move to align with South African laws, but its acceptance by regulators remains uncertain. The outcome will significantly influence Canal+’s expansion strategy in Africa and MultiChoice’s future operations.