MultiChoice is “greedy and disliked” – analyst

Source: MyBroadband

Independent analyst Chris Gilmour said MultiChoice is not liked and very greedy, which does not bode well for its future prospects.

Gilmour was speaking to Business Day TV about French media company Groupe Canal+ acquiring another big chunk of shares in MultiChoice.

Groupe Canal+ SA acquired 6.5% of MultiChoice Group’s total ordinary shares in early August, and three weeks later increased its stake to 12%.

This sparked rumours that Vivendi – the entity which owns and controls Groupe Canal+ – is looking to acquire MultiChoice.

Vivendi tried to acquire MultiChoice Africa in 2018, but the multi-million-dollar offer was rejected by Naspers.

The company is now stocking up on MultiChoice shares through Groupe Canal+, which may indicate that Vivendi is interested in the bigger prize.

Commenting on this development, Gilmour said he was surprised by the news and is not sure what Vivendi “is playing at here”.

He said given the stiff competition which MultiChoice is facing – notably from Netflix and other streaming providers – the company is facing a tough future.

Even with the acquisition rumours, Gilmour did not like MultiChoice as a long-term investment.

“You are talking about an operator which is not liked and is very greedy. This is going to come back to bite them,” he said.

MultiChoice responds
MultiChoice did not directly respond to Gilmour’s statement that the company is greedy and disliked.

A MultiChoice spokesperson told MyBroadband it is not their policy to comment on the personal views of third parties, including market commentators and analysts.

Instead, the company commented on the corporate action related to Groupe Canal+ purchasing a large chunk of its shares.

“As a listed company, we maintain an open dialogue with our strategic partners and the investment community,” a MultiChoice spokesperson said.

“Vivendi has publicly stated that its stake in MultiChoice Group is a long-term financial investment, demonstrating its confidence in the prospects of the group as the leading video entertainment platform on the African continent and reinforcing its existing long-term relationship with us.”

 

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My Office News Ⓒ 2017 - Designed by A Collective


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