MultiChoice Group Limited continues to bolster its partnership with Comcast Corporation’s subsidiary NBCUniversal Media, LLC (NBCU) and Sky with additional equity funding for Showmax Africa Holdings Limited (SMAH). This move underscores MultiChoice’s commitment to solidifying Showmax’s position as the leading streaming service in Africa.
Partnership Expansion for Showmax
In March 2023, MultiChoice announced a groundbreaking partnership with Comcast and Sky aimed at propelling Showmax to the forefront of the African streaming market. The collaboration aimed to leverage the strengths of each partner to enhance Showmax’s content offerings and technological capabilities.
Equity Stakes and Funding
MultiChoice contributed its Showmax business, securing a 70% equity stake in SMAH. Comcast, through NBCU, acquired the remaining 30% stake. Both partners committed to providing ongoing support and funding to SMAH in proportion to their shareholdings.
According to the recent announcement, MultiChoice, through its subsidiary MGHBV, and Comcast will inject an additional USD 30 million in equity funding into SMAH, further solidifying their commitment to the partnership. This follows a prior investment of USD 20 million from both parties.
Table: Summary of Equity Funding
| Date | Equity Funding (USD) |
|---|---|
| Prior to 2023 | $20 million |
| February 2024 | $30 million |
| Total | $50 million |
Future Funding and Financial Performance
Looking ahead, MultiChoice anticipates additional equity funding of up to USD 127 million for the remainder of its financial year ending 31 March 2024. This funding will be shared between MultiChoice and Comcast in proportion to their respective shareholdings.
The financial performance of SMAH is closely monitored, with disclosures made in MultiChoice’s interim results released on 15 November 2023. SMAH’s performance is consolidated into MultiChoice’s financials, reflecting the significance of the partnership in the company’s overall operations.
Conclusion
MultiChoice’s continued investment in the Showmax partnership highlights its commitment to delivering premium streaming services to African audiences. With further equity funding and ongoing support from Comcast and Sky, Showmax is poised for continued growth and success in the competitive streaming landscape.
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