Billion-Dollar Deal on the Rocks as MultiChoice and Canal+ Battle Regulators
A potentially game-changing merger between South African pay-TV giant MultiChoice and French media powerhouse Canal+ is hanging in the balance as the companies face off against regulatory hurdles.
In a bold move, the two entities have approached the South African Communications Regulator (Icasa) and the Competition Commission, seeking to merge and create a broadcasting behemoth. But critics warn that the deal is riddled with controversy and poses a significant threat to the country’s media landscape.
At the heart of the controversy is the foreign ownership restriction in the Electronic Communications Act, which prohibits foreign entities from holding more than 20% of the voting rights of a South African broadcaster. The merger would effectively bypass this restriction, allowing Canal+, a French company, to exert significant control over MultiChoice.
Regulatory Nightmares
Industry insiders suggest that the merger will be met with fierce resistance from regulators, who will struggle to justify allowing a foreign entity to gain a foothold in the lucrative South African broadcasting market. "This deal is a slap in the face to South African broadcasting and could lead to a loss of control over our airwaves," said a senior regulator.
The Competition Commission, tasked with reviewing the deal, is under pressure to reject the merger and protect local broadcasting interests. Meanwhile, Icasa is wrestling with the foreign ownership restriction, which could derail the entire deal.
Shady Dealings Alleged
Critics claim that the merger is not about creating a stronger, more competitive broadcasting market, but rather about Canal+ acquiring a foothold in South Africa to expand its global reach. "This deal is a thinly veiled attempt by Canal+ to gain control over South African broadcasting and undermine local players," said a senior industry executive.
As the battle between MultiChoice and Canal+ intensifies, investors are left wondering if the deal will ultimately go through. One thing is certain: the future of South African broadcasting hangs in the balance.
Will Regulators Save the Day?
Only time will tell if the regulators will have the courage to reject this deal and protect South Africa’s broadcasting interests. The world is watching as the country’s media landscape teeters on the brink of collapse.
