Altice’s takeover of Molotov looks like being in jeopardy, according to French newspaper Les Echos.
In January, the Altice France group has entered into exclusive negotiations to acquire a majority stake in the OTT platform Molotov.
According to the report, negotiations are dragging on, making it increasingly hypothetical that a takeover will be concluded. “Negotiations are at a standstill at this stage,” says a senior executive, close to the issue. Molotov cannot agree with all its shareholders, especially the small ones. “You can never say never and negotiations are never formally stopped,” adds this source, pointing out, however, that there is a “high probability that the transaction will not succeed.”
Before choosing to negotiate with Altice, the group talked with other potential partners, including France Télévisions, Canal + and Orange.
One of the problems seem to be the fact that it will not be an all-cash deal, with Altice contributing synergies and content. According to information of Les Ecos, Altice had undertaken to participate in a capital increase for some €10 million once the transaction was concluded, and Molotov’s shareholders also had to pay a slightly lower amount into the pot.
Launched in 2016, Molotov, available on computers, mobiles, tablets and TV sets, boasts more than 7 million users. The company had not hidden for a few months that it was looking for partners to accelerate its development, amid press reports that the company was running out of money to continue operations.
