M6, The French TV company owned by Bertelsmann of Germany, is planning to merge with TF1, a fellow French TV company which is controlled by Bouygues, a French conglomerate. The merger will be subject to regulatory approval which may be a lengthy and challenging process as the two companies would control 70% of French TV advertising.
The companies hope to persuade the regulator to consider their share of advertising overall rather than the narrower TV advertising remit and to focus on the need for quality French content within an increasingly globalised market. The combined companies would generate revenue of €3.4bn and could save approximately €300m in costs through synergies.
