The move by Canal+ to buy Nigerian production studio ROK is likely to be financially useful to them, says a research note from investment bankers Exane/BNPP.

The bank says the acquisition, coming so soon after Canal+’s announcement to trim staff by 20 pe rcent, shows a definite shift to geographic expansion, says the bank.

Explaining how it sees the rationale, the bank suggests that over the past few quarters, Canal+ has started to diversify its geographic exposure to offset the decline of its pay-TV operations in France. “After the acquisition of M7 a few weeks ago, this deal is another step to put a foot in Africa, where the demand for content is continually increasing.”

“We expect this deal, even if not material, to positively contribute to Canal+ favourable business momentum in Africa,” adds the bank.

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