French media company takes a 6.5 percent stake in MultiChoice
French broadcasting giant Canal+ becomes MultiChoice’s second largest shareholder.
Canal+, a broadcasting company owned by Vivendi, has taken a 6.5 percent stake in Africa’s largest pay-TV operator, Multichoice Group.
Vivendi, which is also the owner of one of the biggest record labels in the world, Universal Music Group, said the acquisition was a long-term financial investment. The conglomerate, which produces film and television, also has interests in online gaming and publishing.
MultiChoice, DStv’s parent company, has a subscriber base of about 19.5-million in 50 countries. The Canal+ group has more than 20.4-million subscribers worldwide, including 8.6-million in mainland France. Canal+ has 20 years experience delivering content in French-speaking African countries and in a statement said the deal demonstrated its belief in the outlook of both MultiChoice and the African continent.
When the R3.2 billion deal was announced, MultiChoice saw its share piece shoot up by 8 percent in response.