The largest French commercial broadcasters TF1 andM6have confirmed their intention to merge, creating the biggest French media group. The agreement has been announced by the corporations, RTL (TF1) and Bouygues (M6), and the finalization of the process is expected to be completed by the end of 2022 after consultation with employees’ representatives, regulatory approvals and shareholder meetings at both companies.
The result of this merge in the French market will have effects over the development of the domestic streaming market, including the existing offeringsMyTF1 and 6play. Both companies, TF1 and M6, are already working together along with public media, France Télévisions, on the combined OTT Salto.
Controllers Bouygues and RTL will own 30% and 16% respectively of the new group, following the acquisition of an 11% stake by Bouygues from RTL for €641 million. Bouygues will have exclusive control of the merged company, acting with RTL as a strategic shareholder.The merged company would have 2020 pro forma revenue of €3.4 billion and current operating profit of €461 million.
Gilles Pélisson, chairman & CEO of Groupe TF1, remarked: ‘This merge is a great opportunity to create a French total video champion that will guarantee independence, quality of content, and pluralism, values that have long been shared by our two groups. It will be an asset in promoting French culture. We now approache a new stage in its development, consistent with the strategic vision developed in the past five years’.
Nicolas de Tavernost, CEO of Groupe M6, underlined: ‘The consolidation of the local TV and audiovisual markets is absolutely necessary if the French audience and the industry as a whole are to continue to play a predominant role competing the exacerbated international players. The combination of know-how will allow for an ambitious French response’.
Olivier Roussat, CEO of Groupe Bouygues, added: ‘We are pleased to contribute to the creation of a major French media group able to compete with the GAFANs. As shareholders with exclusive control over the new group, we will continue to provide it with our full support. And Thomas Rabe, CEO of RTL Group, completed: ‘The proposed merger of Groupe TF1 and Groupe M6 would be a major step in implementing our strategy to create national media champions across our European footprint. It demonstrates how in-country consolidation’.
