Multichoice, the South African pay TV provider, is in the sights of Canal+, a French conglomerate.
This week the French company confirmed that it was looking to acquire Multichoice, which owns DSTV and Showmax.
Canal+’s parent company, Vivendi, is reportedly in the process of unbundling, which has led to Canal+ looking for acquisitions to compete with entertainment and streaming giants such as Netflix.
In a letter to the Multichoice board, Canal+ said that it would offer about R46 billion for Multichoice.
In a statement, Canal+ CEO, Maxime Saada, said: ‘For MultiChoice to continue to thrive in Africa it will require a strategy that enhances its scale as well as strengthened local and global expertise. Combined with Canal+, MultiChoice would have the resources to invest in scale, local African talent and stories, and best-in-class technology, to allow it to grow in Africa and compete with the global streaming media giants. We are steadfast in our belief that MultiChoice could enjoy a bright future as part of a combined group with Canal+.’
Multichoice currently accounts for nearly 90% of all pay TV subscribers in Africa, while Canal+ is active in Africa, Europe, and Asia.