After tense negotiations, MultiChoice and new French owner Canal+ have struck an 11th-hour deal guaranteeing the continued existence of CNN, Cartoon Network and other channels on DStv. Entertainment aggregators like DStv typically have agreements in place securing the right to broadcast and distribute content in specific regions. MultiChoice has for decades positioned itself as the best platform for international studios and broadcasters to reach African audiences for pay TV.
The DStv operator had been negotiating the future on its platform of 12 channels from Warner Bros Discovery. Had agreement not been reached by the end of December 31, channels including Discovery and CNN International would have been removed from Africa’s biggest pay-TV service. In early December, the group told DStv customers the 12 channels could be removed, but Canal+ on Wednesday announced the signing of a new multi-year and multi-territory agreement, “marking a major milestone in the development of their collaboration on an international scale”.
It said: “This expanded agreement covers both the distribution of HBO Max and the renewal of several Warner Bros Discovery thematic channels across numerous regions in Africa and Europe.” The French broadcaster said the new agreement enables it “to strengthen its entertainment, kids, news and documentary channel offering in African markets”. It did not say how long the new deal is for. This comes a few weeks after Netflix and Warner announced they have entered into a definitive agreement that will see the world’s largest paid video streamer acquire Warner Bros, including its film and television studios, HBO Max and HBO.
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The cash-and-stock transaction is valued at $27.75 per Warner Bros share, with a total enterprise value of about $82.7bn. Equity would account for $72bn of the total. The deal for the storied Hollywood studio was met with pushback by the Ellison family — of Oracle fame — and its recently merged Paramount Skydance business launched a hostile bid.
Reuters reported that Warner is likely to reject Paramount’s amended $108.4bn bid despite a personal guarantee from billionaire Larry Ellison backing the media giant’s offer, according to a person familiar with the matter. Consolidation abounds in the industry. Canal+ took control of MultiChoice in September and has been looking to leverage its larger size to get more favourable deals, which will help drive down its operating costs, while working to recover lost customers and gain new ones.
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