Canal+ has commited to “double down” on local African content made with big budgets like Shaka iLembe as its $2B acquisition of South African giant MultiChoice closes, with CEO Maxime Saada today unveiling the new team.
Saada addressed press and investors this morning following the news, which he described as the “largest transaction we have undertaken” that will create a “global media and entertainment powerhouse,” serving more than 40 million subscribers across nearly 70 countries in Europe, Africa and Asia with 17,000 staff. The acquisition should complete fully on October 7.
Saada, who becomes chairman of the new Canal+-MultiChoice board, unveiled the group’s senior leadership team based out of Johannesburg. MultiChoice CEO Calvo Mawela is leaving his role along with CFO Timothy Jacobs, replaced by David Mignot, who becomes CEO of MultiChoice and Canal+ Africa, and Nicolas Dandoy, CFO of MultiChoice and Canal+ Africa.
Mawela remains with the group as Chair of Canal+ Africa and Jacobs will take up a senior finance position. Mignot was previously CEO Africa, Canal+ International and will unveil his new team in the coming days.
Calling Mignot a “highly-experienced media executive,” Saada said the new board “combines good governance with sustainable growth.” “Its composition aims to secure stability, fresh skills and international expertise,” he added.
Saada rejected the notion that promoting French executives to the best roles is “arrogant”. “There is no arrogance,” he added. “Calvo takes on a new role as Chair of Africa and this is why more than half of the board will stay on. Our African operation has always been run by Africans.”
“Doubling down” on local content
Responding to a question from Deadline, Saada said the new group will plough resources into local content like big co-produced hits Shaka iLembe and Spinners, which were made by both Canal+ and MultiChoice. Chronicling the life of the legendary Zulu king, Shaka iLembe Season 3 is already in production and has been a huge anthem.
Saada added: “Putting more financial resources into this content is the key, because the stories are there in Africa and the talent is there in Africa but what is sometimes lacking is the resources. We’ve seen with Spinners or Shaka iLembe that whenever content is produced with world-class production then it shines and not only in Africa, but this content travels very well outside of Africa.”
Mignot, who immediately oversees 100 TV channels and 10,000 hours of content per year, commited to spending “more in absolute terms” on local content. He said this will be a “very significant” figure but couldn’t recall the figure. We have asked Canal+ for the figure.
Speaking alongside Saada and Mignot on the call, Mavela said the new group’s USP will be “stories in Africa that have not been told and we want to travel.” “We are conscious of making sure we do well in terms of our investment in local content,” he added. “Maxime has understood that plurality and investment will be supported from day one, so that will continue.”
Saada denied that the offer will create issues in terms of influence over local news, with the CEO confirming that Canal+ will not launch local news networks in the continent but will focus on entertainment and sports. “We have never done any news in Africa, and we intend to continue focusing on entertainment and sports,” he added. “Carrying news channels is something else, and for that, we have committed to not being involved in those kinds of decisions.”
In August, the International Press Institute raised concerns over “potential editorial interference and the silencing of critical reporting” in Africa following the offer, which it said would create a “de facto monopoly, giving the [Canal+ controlloing shareholder] Bolloré Group enormous influence over the flow of information and the nature of content that reaches millions of African households.”
A decision will also be made in the coming weeks or months over the future of Showmax, the MultiChoice streamer that sold a 30% stake to Comcast’s NBCUniversal last year.
“A beautiful puzzle coming together”
The mega Canal+-MultiChoice offer took a while to be rubberstamped by the South African competition regulator, which finally gave it approval over the summer.
Canal+ previously had a 46% minority stake in MultiChoice. The South African Competition Tribunal approved the offer subject to “agreed conditions,” which included maintaining local funding for South African general entertainment and sports content, and providing local creators with opportunity.
A lack of “duplication and territorial overlap” makes the offer a “beautiful puzzle coming together,” Saada said. Canal+ is in 50 countries, around half of which are in Africa but none of which overlap with MultiChoice’s 16 African countries, he added.
Saada also confirmed that the new group will list on the South African stock exchange as soon as possible, with more details on this expected after October 7 once Canal+ confirms how much equity of MultiChoice it will own.
“We’ve always been very clear we want to list in Johannesburg,” he added. “One question remains [over the equity] and depending on this result we will see where it takes us, but there will be a listing in South Africa and in London on the other side.”
The Paris-headquartered company spun off from its former parent, Vivendi, late last year and listed on the London Stock Exchange, becoming the first media company to do so in several years. Shares ticked up slightly upon today’s MultiChoice announcement and are currently trading at 238p ($3.21) in London. Canal+ saw its sales rise 3.6% to €6.45B ($7.6B) in 2024 compared with the previous year, thanks primarily to its film studio productions and higher subscriptions. EBITA was up 5.4% at €503M.
Melanie Goodfellow contributed reporting
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