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The head of the largest European media company wishes to rekindle an abandoned merger between the French broadcasters M6 and TF1, while the block regulators plan to take a less strict approach to the consolidation of companies.
Thomas Rabe, director general of the German conglomerate Bertelsmann, told Financial Times that he hoped to revisit his plan to merge the two largest private broadcasters in France, which was abandoned in 2022 Following a strong regulatory opposition.
Rabe said that a link between M6 belonging to Bertelsmann and his biggest TF1 rival, held by Bouygues French conglomerates, would be “very” synergistic.
“This would create a real French television and streaming champion, capable of competing with American platforms,” he said, referring to streaming services, including Netflix and Apple TV +.
The two companies had combined income of 3.7 billion euros in 2024 and a market capitalization combined with 3.6 billion euros.
Bouygues said Thursday that he shared Rabe's point of view that a combination of TF1 and M6 still had merit. “We can see such a project put on the table when the legal and regulatory conditions allow it,” he said.
In 2022, Bertelsmann And Bouygues argued that regulators should extend their definition of television and advertising markets, as part of their efforts to obtain approval of the merger. They wanted the streaming services to be considered direct competitors to traditional broadcasters.
The French Competition Authority recognized the threat posed by the streamers, but argued that television remained “a very powerful medium”.
The regulator found that the agreement could Create “major competitive risks” On the television advertising market and said that the combined company should sell one of its main channels to gain approval. This stipulation finally killed the agreement.
Rabe said he had since been encouraged by a change of mentality in Brussels after he described as years of excessively strict competition rules.
“We have been victims of these rules more than once … We tried to create European champions in the media and we were blocked by regulators-I believe for no valid reason,” he said. “Now, the European Commission is talking about the need to reform and promote European champions. Fantastic. Let's do it. “
In his report on the competitiveness of the EU last year, Mario Draghi, former president of the European Central Bank, called on regulators to approve mergers that would stimulate innovation and stimulate economic growth.
Teresa Ribera, the new EU competition commissioner, has since been responsible for Examine if the regulations are “adapted to new realities” of global competition.
Rabe said he would be willing to revisit the TF1-M6 merger as soon as regulators indicate that they are ready to adopt a more open-minded approach. ”
The director general of Bertelsmann, who also has the RTL broadcaster and the publisher Penguin Random House, hopes that this will be done within two to three years.
M6 can arouse the interests of other contenders, including billionaire Rodolphe Saadé, who already has a 10%stake. An agreement with Saadé would not face the same level of regulatory control as a link with TF1.
