TF1 , M6 set to merge
French commercial broadcasters Groupe TF1 and Groupe M6 and RTL Group have entered into exclusive negotiations to merge the activities of and create a major French media group . They say the new group would be well positioned as French champion in streaming to take on global platforms .
The plan has been unanimously approved by the Boards of major stakeholders Groupe Bouygues , RTL Group , Groupe TF1 and Groupe M6 .
They say the combination of these two players , of the know-how of their employees and of their strong brands , would allow the new group to invest more and to step-up innovation and suggest the proposed
They say the new group would be well positioned as French champion in streaming to take on global platforms . merger is critical to ensure the long-term independence of French content creation and to continue to offer diversified and premium local content to the benefit of all viewers .
The group would have a combined € 3.4 billion in revenue and current operating profit of € 461 million . The new company will be backed by Groupe Bouygues and RTL Group , holding respectively 30 % and 16 % of the new group , following the acquisition of an 11 % stake by Groupe Bouygues from RTL Group .
The merged group would pursue an ambitious project focused on five key priorities :
• Strengthen the supply of French quality content leveraging a portfolio of strong brands and ambitious investment levels .
• Continue to guarantee the independence , reliability and quality of information on television , radio and digital , while
respecting pluralism and preserving each channel ’ s identity .
• Further develop a production hub for local and international content across all media segments , with the ambition to grow international content sales .
• Accelerate the development of a French streaming champion combining a catchup and live streaming offering ( based on MyTF1 and 6play ) and an SVoD service .
• Develop cutting-edge technology in streaming ( notably leveraging Groupe TF1 ’ s assets and the Bedrock platform , jointly owned with RTL Group ) and in addressable TV advertising to meet the needs of viewers and customers . “ The merger between Groupe TF1 and Groupe
M6 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 ,” declared Gilles Pélisson ,
chairman & CEO of Groupe TF1 . “ The consolidation of the French television and audiovisual markets is an absolute necessity if the French audience and the industry as a whole are to continue to play a predominant role in the face of exacerbated international competition , which is accelerating rapidly ,” added Nicolas de Tavernost , CEO of Groupe M6 .
“ The audiovisual market benefits from long term growth ,” stated Olivier Roussat , CEO of Groupe Bouygues . “ In this context , Groupe Bouygues is pleased to contribute to the creation of a major French media group able to compete with the GAFANs .”
“ 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 ,” asserted Thomas Rabe , CEO of RTL Group . “ It demonstrates how in-country consolidation creates significant value . As a strategic investor we will be long-term industrial partners of Groupe Bouygues .”
When the operation is finalised , the management of the combined group would include members of the current management teams of Groupe M6 and Groupe TF1 . de Tavernost will be proposed as chairman and CEO of the merged entity . Pélisson will be nominated as deputy CEO of Groupe Bouygues in charge of media and development .
A new name reflecting the diversity and the strength of its assets will be given to the merged company . It would remain based in France and listed on Euronext Paris .
In compliance with French legislation , Groupe TF1 and Groupe M6 will initiate information and consultation procedures with the employee representatives .
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European media wants Digital Markets Act now
Europe ’ s media sector ,
represented by a range of
broadcast , publishing and
advertising organisations ,
has welcomed the European
Commission ’ s proposal on
the Digital Markets Act ( DMA )
as a much needed and urgent
step towards establishing a
fair , balanced and contestable
digital market , but calling for
clarification of , and amendment
to , a number of issues .
According to the signatories
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, a combination of lax regulation and ineffective European competition remedies , means that a handful of global players have used their monopoly positions to become the gatekeepers to the digital economy . These gatekeepers drive the vertical integration within the wider media ecosystem , using platform policies to squeeze independent media businesses and locking out new entrants , extracting revenues from the creative ecosystem through monopoly rents , that would otherwise be |
reinvested in production and media plurality .
“ We therefore welcome the European Commission ’ s proposal to adopt an internal market instrument , with its much-needed ex-ante regulatory approach ,” they say . “ This is vital to address the harmful practices of gatekeepers through the imposition of mandatory obligations and prohibitions . This Proposal is a clearly targeted and sound document which acknowledges the need to control the conduct of digital gatekeepers
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in order for digital markets to remain fair and contestable . This is why the media sector strongly believes that it is imperative that the Proposal is not watered down as it goes through the European Parliament and the Council . However , we consider that certain amendments can be made to the Proposal in order to ensure that the DMA will be a comprehensive instrument that captures and effectively addresses harmful – existing , and potential future – conducts of gatekeepers .” |
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EUROMEDIA 5 |