The Global Media Weekly for executives and entrepreneurs

France TV merger?

Bertelsmann, of Germany, has been reviewing its TV interests in France. Earlier this year, the company was inviting bidders for it 48% stake in French broadcaster M6. The company was aiming for a €3bn valuation. The Bertelsmann CEO Thomas Rabe is now voicing support for a merger with market leader TF1, (M6 is no. 2). TF1 is owned by Bouygues. Media market regulation in Europe may prove challenging but Rabe, is an advocate of consolidation as a necessary defence against digital streamers. The combined entity would take a potentially prohibitive 71% share of TV advertising but only a 16% share of all advertising – if regulators can be persuaded of the case for widening the terms of measurement. Mmm.

Bertelsmann