MultiChoice, the parent company of DStv and GOtv, has been in the throes of financial and operational struggles, barely keeping afloat amid rising competition. In recent years, the South African-based pay-TV giant has battled the growing influence of streaming services that have become more appealing to the continent’s youth-centric demographic. This, combined with what the company alludes to as currency volatility in major markets like Nigeria, led to its loss of about 1.4 million total subscribers and a 44% revenue decline in the financial year that ended March 2025.

As part of its frantic attempt to stay afloat, MultiChoice introduced periodic increments in DStv and GOtv subscription prices across major markets. These increases have not escaped customers’ complaints, regulatory pressure, and legal disputes, which have forced the company to retrace some of its steps in pursuit of more broadly appealing product offerings. Amid this difficult stretch, French media giant Canal+ finally completed its year-long full acquisition of MultiChoice in late September. Without delay, the French company has begun implementing bold measures to curb subscriber decline, with the prices of DStv decoders set to drop by as much as 40% starting November 1.

More audaciously, Canal+ is reportedly seeking to consolidate its hold on the African market by acquiring video streaming platform Showmax. The company is said to be negotiating with Comcast to purchase its 30%  stake. By taking over Showmax, Canal+ would gain distribution rights to a streaming service built on African productions. With its already laid out plans to export MultiChoice’s content to foreign markets, Canal+ could soon wield control over a major share of African content distribution, cementing its position as the most consequential media firm in Africa.

This is as close to a monopoly as it gets, even considering that the French-based company is not new to the African terrain. Long before its major moves with MultiChoice and the potential Showmax acquisition, the company had grown its global influence through acquiring established businesses and improving their operations without altering their brand identity or cultural relevance. Canal+ first entered the African market with Canal+ Horizons in 1990, but it was not until the last decade that it made significant inroads. The company capitalised on ready-made audiences and existing infrastructures by acquiring already-established media entities. In 2019, it acquired IROKOtv’s ROK Studios, gaining Nollywood’s production, content distribution, and publishing channels. Similar acquisitions followed in Senegal’s Marodi TV, Rwanda’s Zacu Entertainment, and Mauritania’s MC Vision. These moves made Canal+ the leading subscription television provider in 19 francophone countries across the continent. Adding MultiChoice’s vast anglophone audience now makes Canal+ the largest pay-TV provider in Africa, with a reach exceeding 30 million subscribers.

Canal+’s global expansion is, in many ways, a case study in how mergers and acquisitions (M&As) can drive growth and sustain long-term business relevance. While not a popular route in Africa, they are increasingly being adopted, too, with the continent recording its highest M&A activity yet in 2025: 29 deals in the first half of the year, according to TechCabal Insights. This 45% increase from the first half of 2024 reflects growing confidence in the African business ecosystem, though it still underscores the need for broader acceptance of M&As across the continent. Typically, M&As in this part of the world are largely seen as some sort of corporate cannibalism where larger corporations bully smaller ones into surrendering their businesses. Or better put, a vicious, bigger fish devouring the smaller ones for the sole purpose of growing their guts. This perception often breeds resistance from founders or business owners who prefer to struggle independently for far too long, even when M&As are a viable survival option.

The average African’s perception of this business requisite overshadows the importance of well-executed mergers and acquisitions to a business ecosystem and economy at large. Explaining why M&As matter, media connoisseur Noah Banjo wrote in a recent episode of his newsletter “Not in the News”: “They simply benefit the ecosystem. Larger companies enable rapid growth, market entry, and competitive strengthening for startups. M&As provide startups with access to resources, new markets, enhanced product offerings, and risk diversification. This consolidation helps startups survive in competitive markets by strengthening their capabilities and positioning them for sustainable success. The process also accelerates innovation and scaling, which is critical in volatile environments like Africa’s emerging markets.”

In cross-border cases like Canal+’s acquisition of MultiChoice and potentially Showmax, there are legitimate concerns about the impact on the local workforce and operational focus. However, the South African Competition Commission already addressed these worries while granting conditional approval for the acquisition earlier in the year. According to the conditions (PDF), the company will remain incorporated and headquartered in South Africa and will pursue a secondary inward listing on the Johannesburg Stock Exchange. The conditions also prohibit Canal+ from cutting any MultiChoice jobs for the next three years, at least.

In many ways, this acquisition brings a level of reassurance. While it does not guarantee that MultiChoice’s operations will be fully revitalised,  it alludes to a renewed direction for the company, backed by stronger resources and clearer strategies. Should Showmax also come under Canal+’s ownership, it’ll prompt a closer examination of why the French media giant is taking such a significant bet on African markets. But the bigger question now — one that will be answered in the coming years — is whether the company can withstand the continent’s economic challenges and re-engage an audience that has grown largely disincentivised.