The merger proposal between TF1 and M6 took a decisive step this Tuesday with the end of the hearings of the parties by the Competition Authority but, according to several sources, the concessions to authorize the operation could be much greater than expected.
In order to be celebrated at the beginning of 2023, the marriage must be absolutely accepted by the college of this institution, made up of specialists in competition law and representatives of the economic world. He will decide in mid-October.
Resist transmission competition
According to a source familiar with the matter, the two television groups did not arrive in the conquered territory on Monday. The Authority’s investigation services reiterated their position for the first time at the end of July, when presenting their conclusions to the college: it is rather unfavorable and without “real change”, despite the concessions offered since then by the chains, judged this font.
In particular, the Bouygues group (owner of TF1) is offered to resell the M6 channel: an unacceptable “remedy”, while the two companies wish to join forces to better resist competition from streaming players (Netflix, Disney, Amazon or even Youtube and Tik Tok).
Netflix, which wants to launch a cheaper offer financed with advertising this year, could quickly become the 4th French television channel, with 200 million euros in annual turnover, according to a study published this Tuesday by the firm NPA Conseil from information from the American press.
Interest in taking control of M6
The reselling of M6 is also supported by some opponents of the merger project, who could position themselves to buy the channel. Several media tycoons had tried in early 2021 to buy the RTL group (controlled by Germany’s Bertelsmann), including Vincent Bolloré (via Vivendi), Xavier Niel and Czech businessman Daniel Kretinsky. The interest of Mediaset, controlled by Silvio Berlusconi, is also mentioned.
The Bouygues group, represented by its chairman Martin Bouygues and CEO Olivier Roussat, as well as TF1 CEO Gilles Pélisson, were interviewed extensively on Tuesday. His arguments were directed mainly at members of the private sector college, including representatives of Plastic Omnium, Eutelsat, Tikehau Capital or Atos, potentially more inclined to pragmatism than to strict compliance with competition rules.
The union of the first and third channels of the French audiovisual scene would create a giant that would surpass France TV with more than 30% of the audience share and would represent three quarters of the television advertising market. Ultimately, the government will have the possibility of annulling a refusal by the Authority, if it justifies its decision on grounds of general interest.
Source: BFM TV
