Multiple Choice Africa, the continent’s leading pay-TV operator, has rejected a takeover bid from a consortium of investors led by French media giant Vivendi. The offer, which valued Multichoice Africa at $2.1 billion, was seen as an attempt to expand Vivendi’s presence in the African market and compete with Netflix and other streaming services.
Details
Multichoice Africa said in a statement that the offer was unsolicited and undervalued the company’s growth potential and strategic position. The company also said it was committed to its long-term vision of providing quality entertainment and information to its customers in 50 African countries.
The Multichoice Group owns DStv, Africa’s largest satellite television service, as well as Showmax, an online video-on-demand platform, and SuperSport, a sports broadcast network.
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Multichoice Africa faces increasing competition from Netflix, which launched in Africa in 2016 and is growing its subscriber base and content offering. Netflix has also partnered with local carriers to offer affordable data plans and mobile-only plans.
However, Multichoice Africa argued that it still has an edge over Netflix in terms of local content, sports rights and customer service.
Vivendi, on the other hand, is 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 provider operating in 25 African countries, as well as StudioCanal, a film and television production company, and Havas, an advertising and communications group.
Editor’s note: We’ve updated the story to reflect that the deal is worth $2.5 billion, not $1.7 billion
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