2024 - TF1-M6 merger: why this huge project could have trouble seeing the light of day

While the TF1 and M6 groups plan to merge in order to create a new television giant capable of competing with American platforms, the Competition Authority has issued an initial opinion against this idea.

Competitors for many years, the TF1 and M6 groups now wish to join forces, to face competition from powerful American streaming platforms. Indeed, while the group’s main German shareholder M6 made the decision to sell the majority of its shares in the company, the group TF1 applied for the takeover, thus initiating a process of merger between the two rival companies. The objective of this project is to createthe French media group offering the most diversified offer in TV, radio, digital, content production and technologies“, as stated in a joint press release from the two groups.

In detail, the Bouygues group, which is the main shareholder of the group TF1, will have to pay the sum of 641 million euros to buy back 30% of the group’s capital M6, currently owned by RTL Group. The latter will not completely disengage from the company run by Nicolas de Tavernost, given that the German media group will retain 16% of the capital of the new company resulting from the merger between TF1 and M6, of which Nicolas de Tavernost would become the main leader. For his part, the current CEO of TF1, Gilles Pélisson, would be appointed to the post of deputy director of the Bouygues group, in charge of media and development. Nevertheless, this proposed merger between TF1 and M6 risk of not succeeding.

TF1-M6 merger: a first unfavorable opinion from the French Competition Authority

In effect, the investigation services of the Autorité de la concurrence have published an initial report against this merger Tuesday, July 26, 2022. The institution is particularly concerned “significant competition concerns” in television advertising, given that the new company resulting from the merger between TF1 and M6 holds no less than 75% of the advertising market. For their part, the two private audiovisual groups responded to the Competition Authority “within three weeks“. As a reminder, this unfavorable opinion does not prejudge the final decision of the College of the Authority.

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