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.

Other posts by :

1. SES happy with releasing 160MHz of spectrum for 5G
2. Inmarsat “likely to win appeal” over Ligado/AST action
3. FCC seeks fair play over foreign satellite access
4. Bank raises RocketLab target price
5. Paramount throws kitchen sink
6. Ukraine wants its own LEO system
7. SpaceX outlines Starlink cellular delivery plan
8. NAB vs CTIA on C-band release
9. Laser terminals to operate at 100x faster

Categories: Articles, Business, M&A