Canal+ Extends MultiChoice Acquisition Deadline Due to Regulatory Hurdles

French media giant Canal+ has decided to extend the deadline for its planned acquisition of South Africa’s leading pay-TV broadcaster, MultiChoice, by six months. The new deadline for the Canal+ MultiChoice acquisition is now set for October 8, 2025. This delay comes as both companies face regulatory challenges in South Africa, which have slowed the progress of the deal.

The main obstacle is South Africa’s Electronic Communications Act (ECA), a law that strictly limits foreign ownership in companies holding broadcasting licenses. According to this law, foreign entities cannot own more than 20% of a broadcasting license in the country. This presents a tough challenge for Canal+, which is looking to expand its footprint in Africa by bringing MultiChoice into its growing portfolio of media assets.

To address these regulatory hurdles, Canal+ and MultiChoice have come up with a creative solution. They plan to create a new company called ‘LicenceCo,’ which will hold the broadcasting license required to operate in South Africa. To comply with local laws, LicenceCo will be majority-owned by historically disadvantaged South Africans.

Key stakeholders in this new entity include groups like Phuthuma Nathi, Identity Partners Itai Consortium, Afrifund Consortium, and a Workers’ Trust. This structure ensures that LicenceCo aligns with South African regulations while still allowing MultiChoice Group to retain a 49% economic interest and 20% voting rights in the company.

This restructuring plan is also designed to support Broad-Based Black Economic Empowerment (BBBEE), a policy aimed at addressing inequality and promoting economic opportunities for historically marginalized groups in South Africa. However, whether regulators will approve this proposal remains uncertain.

Despite the delays caused by these regulatory challenges, MultiChoice continues to operate successfully across its core markets in Africa. The company is well-known for its popular services like DStv and GOtv, which serve millions of subscribers across the continent.

Additionally, MultiChoice has been focusing on adapting to changing viewer habits by investing heavily in digital platforms like Showmax, its streaming service. These efforts aim to attract more customers and strengthen its position in an increasingly competitive market.

For Canal+, the acquisition of MultiChoice represents a significant step in its strategy to expand into Africa, one of the fastest-growing markets for media and entertainment. However, the success of this plan depends heavily on whether the proposed LicenceCo structure satisfies South African regulators. If approved, it could pave the way for Canal+ to integrate MultiChoice into its operations while adhering to local laws.

As the new October deadline approaches, both companies are working hard to finalize the deal while awaiting regulatory approval. The Canal+ MultiChoice acquisition is being closely watched by industry experts and stakeholders who see this as a pivotal moment for both companies. For now, all eyes remain on South African authorities as they review the proposed restructuring plan.

This six-month extension underscores how complex cross-border acquisitions can be when regulatory frameworks come into play. Whether Canal+ can successfully navigate these challenges will determine not only the future of this deal but also its broader ambitions in Africa’s media landscape.

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