MultiChoice Chief Executive Calvo Mawela stated that a potential $3 billion merger with French media company Canal+, owned by Vivendi SE, would strengthen the African TV company’s ability to compete with US streaming giants such as Netflix.
In an interview with Bloomberg TV on Thursday, Mawela explained that pending regulatory approval, the deal would expand MultiChoice’s market reach by combining its presence in English-speaking African countries with Canal+’s foothold in French-speaking regions.
The PUNCH reports that this merger would provide the company with the scale needed to negotiate better rates for content and improve revenue potential, he said.
“A combination gives us a better chance to compete against the global giants,” Mawela said, emphasising that scale is crucial in the streaming industry.
“This enables us to negotiate better rates for content and generate more revenue, especially with one party operating in French-speaking Africa and the other in English-speaking parts of Africa.”
The merger, classified as a “large merger” under South African competition law, will require approval from the Competition Tribunal.
MultiChoice officially accepted Vivendi’s offer in June.
