TF1, AB Group Finalize Deal

PARIS: TF1 has finalized a deal with AB Group for the French DTT channels NT1 and TMC, after entering into exclusive negotiations at the end of last month.

The market-leading French broadcasting group is taking 100 percent of NT1 and acquiring an additional 40 percent stake in TMC—bringing its ownership to 80 percent—for 192 million euros in cash. TF1 is retaining a 33.5-percent interest in the AB Group, whose management is being granted a call option to buy out TF1’s stake within two years for 155 million euros.

The deal is part of TF1’s efforts to strengthen its position in the DTT market; TMC and NT1 are ranked first and fifth, respectively, among free DTT channels.

TF1 has also reached a deal with AB Group’s majority shareholder, Claude Berda, to increase its stake in his holding company for the Belgian French-language channels AB3. AB4 and Videoclick. TF1 is spending 1.5 million euros to increase its interest to 49 percent.