Canal+ bids $2.9bn to acquire MultiChoice - TechGyant

Canal+ bids $2.9bn to acquire MultiChoice

Canal+-bids-$2.9bn-to-acquire-MultiChoice

Canal+, a subsidiary of Vivendi SE – a French mass media company, just made a $2.9 billion formal offer to purchase Multichoice, a South African entertainment company that is the parent company of DSTV and GOTV. This offer was made today in an effort to expand Canal+ to other parts of Africa, as it’s only available in 23 countries at the time of writing this report. 

In 2023, Multichoice suffered a huge profit loss as the number of subscribers was reduced due to the emergence of Netflix and Showmax in Africa’s entertainment industry. The company’s operating profit was reduced by 22%, with a R911 million loss within six months.

While Canal+ in December 2023 recorded it’s highest number of subscribers – 7.6 million with a market share rise of 67% in Côte d’Ivoire. The company is expected to grow $5bn to $6.4bn by 2028, with 57 million subscribers, a 39% increase.

Canal+ is currently proposing to buy Multichoice’s shares at 125 rands($6.72) per share, which is significantly above the minimum price of 105 rands required by the Takeover Regulations. At the moment, the total number of MultiChoice Shares on the issue is 442,512,678.

Since 2020, Canal+ has been buying shares in Multichoice, and it currently owns over 35% of the company’s holdings, causing it to make a bold move to propose the takeover offer.

Also read: East African startup Triply joins Y Combinator’s Winter 2024 batch.

Total
0
Shares
Leave a Reply

Your email address will not be published. Required fields are marked *

Previous Post
Applications-Open-for-Women-Techmakers-Ambassadors-2024

Applications Open for Women Techmakers Ambassadors 2024

Next Post
Mauritius-President-champions-Africa’s-tech-driven-transformation-in-Rwanda

Mauritius President champions Africa’s tech-driven transformation in Rwanda

Related Posts