RTL Nederland, Talpa Network to Merge

RTL Group has signed an agreement to merge RTL Nederland with John de Mol’s Talpa Network.

The move is intended to create a “strong Dutch cross-media group across TV, streaming, radio, print and digital” with “the scale, resources and creativity to compete with global tech platforms in the Netherlands.”

The deal brings Talpa’s TV, radio, print, digital, e-commerce and other assets to an enlarged RTL Nederland. RTL Group will remain controlling shareholder with a 70 percent stake, with Talpa Network owning 30 percent. Talpa Network’s content units, Talpa Concepts and Talpa Entertainment Producties, are not part of the deal but have entered into an agreement with RTL Nederland for newly developed formats for linear TV channels and for the streaming service Videoland.

Thomas Rabe, CEO of RTL Group, said: “Following the proposed merger of Groupe TF1 and Groupe M6 in France, the combination of RTL Nederland and Talpa Network is the second major step to scale up our broadcasting businesses across our European footprint. The new cross-media group will have the size, resources and creativity to compete with global tech platforms in the Netherlands when it comes to investing in premium content, offering the most advanced addressable advertising opportunities, and expanding Videoland, the leading national streaming service for Dutch viewers.”

De Mol added, “I started Talpa Network to build a strong Dutch media company able to compete with the growing global platforms in order to preserve local content. This next step will allow us to do just that—and I am pleased that the deal creates a strong Dutch company that not only guarantees Dutch quality content but is also able to take on the American and Chinese tech players. On top of that, it allows me to fully focus once again on what I like best: the creation and development of new innovative content.”

RTL Nederland CEO Sven Sauvé will lead the combined group. Pim Schmitz, CEO of Talpa Network, will join the new supervisory board of RTL Nederland, which will be chaired by Elmar Heggen, COO and deputy CEO of RTL Group.

Heggen commented, “This merger demonstrates that a combination of national commercial broadcasters in a rapidly changing environment forms a strong and sustainable basis for future growth in the interest of our shareholders. John de Mol has an outstanding entrepreneurial and creative track record. Our long-term partnership and collaboration in the area of content development will be an important success factor for our linear TV channels and streaming offers.”

Subject to approval from the competition authorities, the deal is expected to close in the first half of 2022.

The enlarged RTL Nederland would have 2020 revenues of €909 million and EBITA of €84 million.

Sauvé noted, “Over the last 31 years, we have built a successful company with solid financial foundations. The current changes in the media industry demonstrate the importance of strong national media players that understand the art of local storytelling and invest substantially in digital innovation, social and cultural relevance, and independent journalism. This exciting new phase gives us the possibility to ramp up investments in content, technology and data to create a competitive and distinguished alternative to global tech players. This will bring value not only for our viewers but also for advertisers and the creative industry as a whole. We look forward to working together with John de Mol and Talpa to steer this new group towards a bright future.”