Multichoice Africa, the leading pay-TV operator in the continent, has rejected a buyout bid from a consortium of investors led by French media giant Vivendi. The bid, which valued Multichoice Africa at $2.1 billion, was seen as an attempt to expand Vivendi’s presence in the African market and to compete with Netflix and other streaming services.
Details
Multichoice Africa said in a statement that the bid was unsolicited and undervalued the company’s growth potential and strategic position. The company also said that it was committed to its long-term vision of delivering quality entertainment and information to its customers across 50 African countries.
Multichoice Group owns DStv, the largest satellite TV service in Africa, as well as Showmax, an online video-on-demand platform, and SuperSport, a sports broadcasting network.
Why This Matters
Multichoice Africa has been facing increasing competition from Netflix, which launched in Africa in 2016 and has been growing its subscriber base and content offering. Netflix has also partnered with local telecom operators to offer affordable data bundles and mobile-only plans.
However, Multichoice Africa has argued that it still has an edge over Netflix in terms of local content, sports rights, and customer service.
Vivendi, on the other hand, has been looking for new sources of revenue and growth after selling its stake in Universal Music Group to a consortium led by Chinese tech giant Tencent last year.
Vivendi owns Canal+, a pay-TV operator that operates in 25 African countries, as well as StudioCanal, a film and TV production company, and Havas, an advertising and communications group.
Catch up on news and other tidbits on our WhatsApp Community Page, Twitter/X, and subscribe to our weekly newsletter to ensure you don’t miss out on any news.
