Bertelsmann CEO Thomas Rabe needs to revive the failed merger of French nets TF1 and M6.
Speaking to the FT, Thomas Rabe mentioned that softening European regulation meant he’ll exploring how one can revive the merger, which might have introduced his RTL-owned M6 along with Bouygues-owned business broadcaster group TF1.
The earlier try and carry the businesses collectively in 2022 was deserted after being thwarted by European Union regulators, who thought of the merged group can be too dominant within the TV promoting market and mentioned one of many most important channels concerned would must be offered to rectify the problem.
However, with Europe showing to be extra agreeable to its media teams strengthening within the face of the Trump administration within the U.S. and more and more highly effective world streaming companies, Rabe needs to place a “highly” synergistic deal again on the agenda. The firms’ mixed income was €3.7B ($4.1B) in 2024 they usually had a mixed market cap of €3.6B.
“It would create a true French TV and streaming champion, able to compete with the U.S. platforms,” Rabe informed the FT.
A spokesman for Groupe TF1 mentioned: “We can see putting such a project back on the table when the legal and regulatory conditions permit it.”
This follows a report from former European Central Bank chief Mario Draghi final 12 months on EU competitiveness, which urged regulators ought to loosen up merger guidelines. As the FT reported, the brand new EU competitors commissioner, Teresa Ribera, has since begun work to evaluate whether or not regulation is “fit for the new realities” of worldwide competitors.
Rabe welcomed the change in method and mentioned: “We’ve been the victims of these rules more than once. We have tried to create European champions in media and we were blocked by the regulators — I believe for no good reason. Now the European Commission talks about the necessity to reform and promote European champions. Fantastic. Let’s do it.”
Bertelsmann owns the likes of M6, publishing Penguin Random House, European broadcast group RTL and its subsidiary, Got Talent maker Fremantle. TF1, owned by telecoms large Bouygues, runs TV channels and owns Studio TF1, which not too long ago modified its title from Newen Group.