French media giant Canal+ has extended the deadline for its planned acquisition of South African pay-TV provider MultiChoice, pushing the expected completion date to October 8, 2025. The delay stems from ongoing regulatory challenges, particularly South Africa’s strict foreign ownership laws in the broadcasting sector.
At the center of the issue is the Electronic Communications Act (ECA), which caps foreign ownership of local broadcasting licenses at 20%. This presents a significant hurdle for Canal+, which aims to fully integrate MultiChoice into its growing African media portfolio.
In an effort to navigate these regulatory constraints, Canal+ and MultiChoice have put forward a restructuring plan that involves the creation of a new entity, LicenceCo. This entity would hold the broadcasting license while ensuring majority ownership by historically disadvantaged South Africans. Key stakeholders in LicenceCo would include Phuthuma Nathi, Identity Partners Itai Consortium, Afrifund Consortium, and a Workers’ Trust, in line with Broad-Based Black Economic Empowerment (BBBEE) requirements. Under this structure, MultiChoice Group would maintain a 49% economic stakeand 20% voting rights in LicenceCo.
Despite the regulatory delays, MultiChoice remains a dominant player in Africa’s pay-TV industry, operating leading platforms such as DStv and GOtv. The company has also been expanding its digital presence, particularly through its streaming service Showmax, to meet the growing demand for online content.
With the new October 2025 deadline in place, the success of the acquisition now hinges on regulatory approvals. The proposed LicenceCo framework is a strategic attempt to comply with South African laws, but it remains to be seen whether authorities will greenlight the plan. The outcome will play a crucial role in shaping Canal+’s expansion strategy in Africa and determining the future trajectory of MultiChoice’s operations.
