This will result in the creation of a major new French media group and accelerate the development of French streaming, combining a catch-up and live streaming offer, based on MyTF1 and 6play, and a SVOD service.
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. EBITA is estimated at €250 million to €350 million within three years after completion of the transaction.
The completion is expected to be completed by the end of 2022 after consultation with employees’ representatives, regulatory approvals (antitrust and CSA) and shareholder meetings of both companies.
Commenting on the development, Gilles Pélisson, chairman & CEO of Groupe TF1, said: “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. It will be an asset in promoting French culture. Groupe TF1 now approaches a new stage in its development, consistent with the strategic vision developed in the past five years”.
Nicolas de Tavernost, CEO of Groupe M6, added: “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. The combination of the two groups’ know-how will allow for an ambitious French response. Furthermore, this proposed merger of Groupe M6 and Groupe TF1 is the only transaction offering value creation for all Groupe M6 shareholders”.
Olivier Roussat, CEO of Groupe Bouygues, said: “The audiovisual market benefits from long term growth. In this context, Groupe Bouygues is pleased to contribute to the creation of a major French media group able to compete with the GAFANs. We are pleased with this major development and partnership which confirm Groupe Bouygues’s commitment to the media since 1987. As shareholders with exclusive control over the new group, we will continue to provide it with our full support”.
Thomas Rabe, CEO of RTL Group, added: “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