TF1, M6 Set Merger Plans

TF1 and M6 have entered into exclusive negotiations to merge in order to deliver a “French response to the challenges from global platforms.”

The merger has been unanimously approved by the Boards of Groupe Bouygues, RTL Group, TF1 and M6.

The combined entity would be in a stronger position to deliver high-quality French content for both domestic use and international distribution. It would also help to accelerate the companies’ free and pay streaming services.

The merged company would create €250 million to €300 million in additional value for the shareholders within three years of the transaction closing, which is expected by year-end 2022. Groupe Bouygues would own 30 percent of the new group and RTL Group 16 percent following the acquisition of an 11 percent stake by Groupe Bouygues from RTL Group for €641 million.

Gilles Pélisson, chairman and 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, said: “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 creates significant value. As a strategic investor, we will be long-term industrial partners of Groupe Bouygues.”

De Tavernost will be proposed as chairman and CEO of the merged entity. Pélisson will be nominated as deputy CEO of Groupe Bouygues in charge of media and development. The merged company would be given a new name.