French media giant navigates South African ownership restrictions through complex shareholding structure
Canal+ has finalized its $2 billion acquisition of South African pay-TV company MultiChoice after clearing regulatory hurdles through a complex ownership structure designed to comply with South Africa’s foreign broadcasting ownership limits.
The deal, declared unconditional on September 22, 2025, creates Africa’s largest pay-TV operator by combining Canal+’s French-speaking African presence with MultiChoice’s dominance in English-speaking markets across the continent.
Regulatory Compliance Through LicenceCo Structure
South African broadcasting regulations limiting foreign ownership to 20% required creative structuring to enable the acquisition. MultiChoice created a new entity, LicenceCo, to hold its broadcasting license, with MultiChoice retaining 20% voting rights but securing 49% economic interest.
The remaining ownership is distributed among historically disadvantaged persons (HDPs) and South African entities, including long-standing empowerment partner Phuthuma Nathi and the MultiChoice Workers Trust. This arrangement satisfied both the Independent Communications Authority of South Africa (ICASA) and the Competition Tribunal.
Employee and Shareholder Benefits
The acquisition includes commitments to job protection, local content investment, and supplier diversity initiatives. An extraordinary dividend of R1.375 billion is expected, with portions allocated to Phuthuma Nathi and other South African shareholders.
These provisions address regulatory concerns about foreign control while providing economic benefits to local stakeholders who might otherwise be disadvantaged by the acquisition.
Continental Media Consolidation Strategy
For Canal+, the deal cements its position as Africa’s dominant pay-TV operator at a crucial time when global streaming platforms including Netflix, Amazon Prime Video, and MultiChoice’s own Showmax are intensifying competition across African markets.
Canal+ CEO Jacques du Puy previously stated the merger would “strengthen Africa’s media landscape” and expand access to diverse content across the continent, positioning the combined entity to compete more effectively with global streaming services.
Competitive Response to Streaming Pressure
The acquisition reflects broader consolidation trends in traditional pay-TV as operators seek scale to compete with streaming platforms that don’t face the same regulatory constraints or infrastructure requirements. MultiChoice leadership has framed the deal as necessary for sustainable growth in an increasingly competitive market.
However, the success of this strategy depends on whether traditional pay-TV can maintain relevance against streaming services that offer greater content flexibility and often lower pricing.
Regulatory Precedent for Foreign Investment
The deal establishes important precedents for how African regulators balance foreign investment needs with domestic control requirements. The complex ownership structure allows capital injection while maintaining meaningful local participation and regulatory compliance.
This approach could influence similar transactions across Africa where foreign investment is needed but sovereignty concerns require local ownership participation.
Integration Challenges and Market Dynamics
Canal+ now faces the challenge of integrating MultiChoice’s operations across multiple African markets while delivering on commitments around local content, employment protection, and consumer pricing stability.
The success will be measured not just by financial performance but by how well the combined entity serves African audiences while competing against global streaming platforms with substantially different cost structures and content strategies.
The acquisition represents a significant test of whether traditional pay-TV consolidation can create sustainable competitive advantages in markets increasingly dominated by global streaming services.
