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Canal+ Offer for MultiChoice Gains Shareholders’ Support

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Some MultiChoice shareholders have expressed relief at the offer by Canal+ to buy Africa’s pay TV giant for $2.9 billion, essentially viewing the potential deal as a vehicle for them to be rescued from an investment that has turned sour.

Canal+ Offer for MultiChoice Gains Shareholders’ Support

On April 8,, the deal inched closer to being cemented when the board of MultiChoice agreed to cooperate with Canal+, a sign that it was warming to a tie-up with France’s broadcasting conglomerate.

The board initially rejected the offer by Canal+ to buy the MultiChoice shares that it does not already own for R105 each, saying it was too low and undervalued the company’s growth prospects.

But MultiChoice has been convinced to reconsider its position after Canal+ improved the offer to R125 per share. Canal+ already owns 40.01% of MultiChoice shares on the JSE and wants to pay R35-billion to buy the rest of the company and take control of it.

The next big test is whether MultiChoice shareholders will support or reject Canal+’s offer, which requires support from 90% of shareholders to get the multibillion-rand deal over the line.

Daily Maverick canvassed the views of MultiChoice shareholders and industry players about the merits of the deal and whether they planned to throw their weight behind it when it comes up for a vote in the coming months.

Early indications are that some shareholders view the deal as a blessing and an opportunity to bail out from their investment in MultiChoice.

Before Canal+ made a move on MultiChoice, the latter’s share price had been down by 22% as its operations came under pressure from declining DStv subscriber numbers and intense competition from streaming services such as Netflix, Amazon Prime and Disney+.

Its earnings have also taken a hit of billions of rands because of the depreciation of African currencies against the US dollar, especially the Nigerian naira.

MultiChoice also had a run-in with regulators; in Nigeria, it ran into problems relating to outstanding tax payments. In South Africa, competitors including the SABC and eMedia (the owner of e.tv) have complained to regulators, accusing MultiChoice of anti-competitive behaviour and using its dominant position to restrict access to its broadcasting platforms and dictating restrictive licensing agreements.

The investment community response

Anthony Sedgwick, the cofounder of Abax Investments, was withering in his assessment of MultiChoice’s investment prospects. “Put frankly, we were relieved to see Canal+ finally step up and bail us out of the position,” he said.

According to MultiChoice’s latest annual report, Abax Investments held 0.34% of its shares. But Abax recently sold those shares, taking advantage of MultiChoice’s 25% share price jump since Canal+ initially tabled its buyout offer in February.

“We think Multichoice is a great business that produces an incredible variety of content, creates opportunities for so many talented people, supports a huge variety of good causes and is a real South African business champion.

“But it operates in unfriendly regulatory countries … and faces some headwinds from hard currency priced content and broadcast costs,” Sedgwick said.

Asief Mohamed, the chief investment officer of Aeon Investment Management, shared Sedgwick’s concerns about MultiChoice.

“My guess is that the other shareholders will likely accept the R125 offer. Governance has for a long time been a concern of some shareholders, including ourselves,” Mohamed told Daily Maverick.

MultiChoice’s latest annual report puts Aeon’s shareholding in it at 0.43%.

Merits of the deal

Canal+ has argued that the aim of buying MultiChoice would be to combine both businesses to create an entertainment giant that can survive a market facing intense competition and declining advertising revenue.

A combined Canal+ and MultiChoice will boast media businesses in many African countries, from South Africa and Nigeria to Senegal and Cameroon.

Not all investors are pessimistic about MultiChoice, its business fundamentals and investment prospects. In fact, when MultiChoice ran into tax troubles in Nigeria in July 2021, which precipitated a steep decline in its share price (to a low of R115), Argon Asset Management saw it as a buying opportunity. It bought MultiChoice shares and has since maintained its holding in the company to about 0.41%.

Asked why Argon remained bullish about MultiChoice, the asset management firm’s equity analyst, Richard Court, said: “Simplistically, there are two parts to MCG [MultiChoice Group]. There is the mature South African business, which, for the most part, was highly profitable and cash-generative.

“Then there is the business that MCG is building in the rest of Africa, which was actually a drag on profitability, and it was still quite small in the life of MCG from a bottom-line perspective. Nigeria takes up a lot of the bandwidth.

“We think the market was overly pessimistic on the prospects of the rest-of-Africa segment. We thought the market was overreacting to the possibility of a tax penalty coming out of Nigeria. The share price fell back and we just took the buying opportunity. We thought that MCG share was worth more than the levels at the time.”

Court said MultiChoice had managed to defend its premium TV segment (consumers who subscribe to DSTV premium packages) despite the arrival of international streaming services in South Africa.

“It did quite well in the lower segment and in the lower-cost offerings by growing subscriptions in those markets. Management was doing the right thing strategically and executing quite well on that strategy,” he said.

MultiChoice’s investments into Showmax strengthened its defence position, he said.

Argon’s house view is that Canal+’s R125 offer undervalues MultiChoice and its growth prospects.

“At the moment, we are unlikely to accept at R125. In a few years from now, if they’re able to build Showmax and if Nigeria stabilises, which we can’t say when, then I think the outlook for MCG is going to be a lot rosier than what it is now. I think the market would recognise that and that should reflect in the share price,” Court said. He was unwilling to comment on what he thought would be a fair offer from Canal+.

Canal+ said the media industry in which MultiChoice was operating “is becoming increasingly globalised and competitive, with regional media companies having to compete with the firepower of global media titans, with enormous resources to invest in content, marketing and technology…”

With a customer base of 22 million, MultiChoice’s growth strategy involves investing in local and international content for its streaming service, Showmax, and Canal+ is likely to provide capital to fund the growth.

Peter Takaendesa, the head of equities at Mergence Investment Managers, has argued that only companies with scale and a strong balance sheet are likely to survive changes in the entertainment industry.

“Canal+ and MultiChoice can leverage content and financial strength. However, there is still no guarantee of success, as the fight against global streaming giants is intense.”

Other large MultiChoice shareholders are yet to opine on the deal. They include the Public Investment Corporation (PIC), which holds 13%, M&G Investments (more than 7%) and Allan Gray (6%). Allan Gray declined to comment to Daily Maverick, and M&G and the PIC were not available to do so.

Another MultiChoice shareholder that is not ready to express its view on the Canal+ deal is Sanlam Investments, which has a 1.9% interest in the broadcasting company. Sanlam said it opted not to express its stance or intentions “considering the sensitive nature of ongoing negotiations” pertaining to the deal.

“While we understand the importance of transparency and accountability, we believe it is essential to maintain confidentiality and prudence when dealing with such matters,” Sanlam said.

The MultiChoice-Canal+ deal is likely to take two years to be completed, as it still requires regulatory approval.

Credit: Daily Maverick

 

 

 


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NCC Blocks Piracy Sites as Nollywood Faces Rising Digital Theft

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Nigerian Copyright Commission (NCC) has called for urgent adoption of advanced digital protections after blocking seven piracy sites amid escalating online threats to Nollywood content.

NCC Blocks Piracy Sites as Nollywood Faces Rising Digital Theft

The call was made during a webinar hosted by Greychapel Legal titled “Clicks, Streams, and Copyright: Who Owns Nollywood’s Digital Future?”, which brought together filmmakers, regulators, entertainment lawyers and media strategists to examine how content ownership and copyright enforcement are being reshaped by the digital age.

Lynda Alphaeus, director and head of the NCC Lagos Office, said the Commission has intensified its efforts to combat piracy across digital channels and is upgrading its operations to meet emerging threats.

According to her, Nigeria’s new Copyright Act was deliberately updated to strengthen creators’ rights amid the explosion of online distribution.

“NCC has worked, and is still working tirelessly to adapt Nigeria’s legal framework to cope with digital distribution challenges. We now have the power to block networks publishing illegal content, and we have already blocked seven websites distributing pirated Nigerian works,” Alphaeus said.

She revealed that the Commission has established a special taskforce known as the STOP Unit to coordinate anti-piracy operations online, alongside new awareness campaigns targeting local markets and schools to educate content creators and the public on copyright obligations.

Alphaeus urged filmmakers and producers to take ownership of their digital safety by deploying available technological protections to safeguard their intellectual property.

She explained that tools such as encryption help prevent unauthorised copying, blockchain technology offers immutable proof of ownership, digital watermarking allows creators to trace illegal uploads, while cloud security and regular offline backups protect creative files before they reach the market.

While noting that copyright in Nigeria does not legally require registration, she stressed that registering one’s work strengthens protection and provides legal presumptions that can be vital in enforcement.

“Whatever you register is presumed to be yours until proven otherwise,” she said, urging creators to invest in copyright knowledge as part of their business strategy.

Other speakers at the webinar reinforced the urgency of protecting Nollywood’s digital assets.

James Omokwe, film director, noted that while streaming platforms have created unprecedented opportunities for visibility and monetisation, they have also opened new vectors for intellectual property theft and unauthorised redistribution.

Solafunmi Laelle, media strategist,  added that audience data, which streaming platforms rely heavily on, will increasingly determine leverage and value in film licensing negotiations.

According to her, creators who lose control of their intellectual property, whether through piracy or unfavourable contracts, also lose access to valuable data that could shape their long-term earnings.

Nky Ofeimun, entertainment lawyer, emphasised the need for creators to understand the contractual implications of ownership, platform exclusivity, and reversion rights.

She noted that many filmmakers still underestimate how quickly digital copies can be illegally duplicated or uploaded once control is lost.

The panelists agreed that as Nollywood deepens its digital footprint, piracy will continue to evolve and become more sophisticated.

They stressed that the industry must respond with equally sophisticated tools, stronger contract negotiation, and improved education around copyright.


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Four Must-Watch African Films Debut Free on Glo TV

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Globacom, just introduced four brand new movies on its premium entertainment platform, Glo TV, and they are completely free for all subscribers. The company says the release marks another major step in its mission to enrich digital entertainment for millions of viewers across the country.

In a statement from Lagos on Wednesday, Globacom explained that the new titles feature some of Africa’s most celebrated actors and filmmakers, offering a colorful mix of romance, comedy, drama, culture, and emotional storytelling. The lineup includes Johnny Just Come (JJC), Eko Vibes, Bound, and Shifting Desire.

“Each of these movies was chosen to spotlight diverse African stories while delivering world class entertainment unavailable in cinemas, on YouTube, or on any other streaming service. Viewers do not need any subscription or extra payment. Access is completely free,” the company said.

Leading the pack is Shifting Desire, featuring Lilian Afegbai and veteran actor Majid Michel. The film is a gripping romantic drama that dives into marriage, intimacy, betrayal, healing, and the emotional journey of a couple using therapy to rebuild trust. Shifting Desire premiered on Glo TV on December 2 and is already streaming for free.

Johnny Just Come (JJC), starring Patience Ozokwor and Nancy Isime, delivers a hilarious cultural crossover story about an American man trying to navigate love and marriage in an African household. The movie explores themes of identity, family, culture, and coexistence in a warm and relatable way.

The third title, Bound, starring Rita Dominic and Eyinna Nwigwe, is a thought-provoking family drama that follows a successful career woman confronting long hidden personal struggles and the impact on her relationship. The film showcases powerful performances from some of Nollywood’s finest.

Rounding out the collection is Eko Vibes, featuring Broda Shaggi, Josh2Funny, and Nkechi Blessing. The movie captures the energy and hustle of Lagos youth culture, spotlighting ambition, humor, and the vibrant spirit of young people chasing success in the city.

Globacom noted that the new releases reinforce its commitment to delivering original African content at the highest quality. “With these exclusive titles, Glo TV is redefining digital entertainment in Nigeria by offering fresh, premium movies not available anywhere else. We remain committed to growing our catalog with rich African stories that celebrate creativity at its best,” the company added.


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Young Africans Hit Hardest by Online Gender Violence, Paradigm Initiative Reports

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A new study, conducted by pan-African organisation, Paradigm Initiative (PIN), warns of an alarming surge in the prevalence of Technology-Facilitated Gender-Based violence, with 67 percent of respondents being victims of at least one or multiple forms of digital violence.

Young Africans Hit Hardest by Online Gender Violence, Paradigm Initiative Reports

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Released on International Human Rights Day, the research exposes deep systemic failures, weak accountability, and unsafe online spaces driving a rapidly escalating epidemic across Cameroon, Kenya, Nigeria, Senegal, Zambia, and Zimbabwe.

PIN recognises that this gap limits both the understanding of TFGBV and the development of effective solutions. In response, this study adopts a survivor-centred approach that reframes how TFGBV is researched, discussed, and addressed. By prioritising survivors’ perspectives, the research uncovers the emotional, social, and systemic dimensions of digital violence that formal reports and statistics often obscure. It also interrogates how survivors navigate reporting systems, access justice, and play an informed role in digital spaces that are frequently hostile or unsafe.

A key finding of the study is that young people are disproportionately affected, with those aged 18–34 constituting the vast majority of survivors. Most incidents of TFGBV occurred on Facebook, WhatsApp, and X (formerly Twitter), underscoring how mainstream social media platforms continue to function as structurally unsafe spaces for many users—particularly women, activists, and advocates.

“Victims’ experiences range from sexual harassment, threats, and misogynistic attacks to severe violations such as stalking, non-consensual image sharing, hacking, sextortion, and identity-based harassment,” the report notes. “Personal testimonies reveal profound emotional, psychological, and reputational harm.”

The study also highlights that formal systems such as the police, employers, and public institutions, remain underutilised, largely due to fear, mistrust, or an expectation of inaction. While the findings expose wide-ranging gaps across platforms, institutions, and legal frameworks, they also highlight survivors’ resilience and their continued efforts to seek safer digital environments.

In light of these findings, PIN calls for urgent action to make online spaces safer for everyone, in line with this year’s Human Rights Day theme, “Human Rights, our everyday essentials.” Addressing these systemic gaps is critical to advancing democratic engagement, promoting media pluralism, fostering digital inclusion, and achieving gender equality across Africa.


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