Canal+ (CAN) M&A announcement summary

Deal rationale and strategic fit

• Acquisition leverages decades of experience to capture Africa's high growth potential, with the continent's population expected to exceed 2 billion by 2050 and GDP growth near 5% over the next five years.

• The deal creates a global entertainment leader with a strong presence in Europe and Africa, aiming for 50–100 million subscribers and building on a quadrupled base over the past decade.

• Combines strong local and global content, major sports rights, and a robust distribution network to maintain and grow market share.

• Builds on a strong track record in French-speaking Africa and addresses mixed performance in English and Portuguese-speaking regions.

• Seeks to strengthen global scale by combining footprints across Africa and Europe, enhancing market reach and operational capabilities.

Financial terms and conditions

• Combined group reported 2024 revenues of approximately €9 billion and 41.8 million subscribers across 74 countries.

• Combined 2025 cost base estimated at around €8 billion, with content as the largest expense at €4.6 billion.

• Acquisition completed in September 2025, with control taken on September 22.

• No due diligence was performed prior to acquisition to allow continued share purchases.

Synergies and expected cost savings

• Over €400 million in annual EBITA cost synergies and €300 million in free cash flow synergies expected by 2030, compared to the 2025 baseline.

• More than €80 million in free cash flow synergies already secured for 2026, mainly from content renegotiations, hardware price reductions, and refinancing.

• Synergies stem from content, technology, procurement, marketing, and financing improvements, with a high conversion rate to free cash flow.

• Implementation costs projected at €35 million in 2026, €40 million in 2028, and €20 million in 2030.

• Synergy initiatives include rationalizing support functions and optimizing tech infrastructure.