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RTL Group retains its majority stake in M6, a failure for its CEO

04 October 2022

12:43

After the failure of the merger between TF1 and M6, RTL Group decided not to sell the latter to another operator. It is an affront to his boss, Thomas Rabe, who dreams of building national champions.

Checkmate for Thomas Rabe. The number one television company in Europe, RTL Group, which he heads, has decided to do so maintain its majority stake in the French audiovisual group M6. That was the dream of this Francophile leader build national media giants to counter the omnipotence of Netflix, Disney and other YouTube. This happens in Belgium with the acquisition of RTL Belgium by the duo Rossel-DPG last year. It was also to be in France by merging its subsidiary M6 with the TF1 group.

This dream vanished following the intransigence of the French competition authorities. The merger would in fact have sold birth of a group that controls over 35% of the audience and, above all, 70% of the television advertising marketthe room. Too much for the antitrust, which was asking for important concessions. These were so important that the two betrothed gave up sealing their nuptials having failed to convince regulators that the market needed to be examined not only under the traditional television prism, but had to be expanded to include competition from the network giants in the audiovisual. market.

consolidation strategy

Thomas Rabe, however, had not held back his consolidation strategy. He has therefore examined several offers in recent weeks for this 48.3% stake in M6, valued at around 1.8 billion euros. They came from Saverio Niel (Free, Le Monde…) ally of Media For Europe (Berlusconi family), from the producer Stefano Courbit(Banijay) associated with the shipowner Rodolphe Saadé (CMA-CGM) and Marc Ladreit de Lacharrière (Fimalac) and the Czech billionaire Daniel Cretinsky (You, Marianne …).

“The legal risks and uncertainties are too high”.

Unfortunately, the RTL Group therefore preferred to abandon this sale and keep its shares in M6 despite these offers described as “financially attractive”. The Luxembourg audiovisual group believes that “the legal risks and uncertainties are too highdue to the necessary antitrust and media approval processes, and the timing of the upcoming license renewal of M6.

In fact, next May, chain will have to request the renewal of its broadcasting license. Once obtained, which is more than likely, it cannot be sold for five years under French law. October 2022-May 2023: a period considered too short and therefore too risky to attract an investor, obtain the approval of the Antitrust Authority and Arcom (the French CSA) without having the guarantee that the license would be granted successful.

Significant consequences

“By blocking the TF1-M6 fusion, the competition authorities looked in the rearview mirror and not the front of the hood.”

A connoisseur of the file

The consequences of this case are not negligible. “For Thomas Rabe, it is a famous affront,” observes a good connoisseur of the dossier. “In defense of him, blocking the TF1-M6 fusion, the competition authorities looked in the rearview mirror and not in the front of the hood“, He adds metaphorically.

In other words, they remained in the world of before, that of dad’s TV, and not in tomorrow’s world, where the Gafan take power at the expense of traditional actors: not only buy and produce content, but invest more and more in sports rights, the prices of which increase in the meantime. They are also breaking into the advertising market, as evidenced by the launch, within a few weeks by Netflix and Disney +, of low-cost offers littered with commercials. Investors were not wrong: the M6 ​​stock fell on the Paris stock exchange on Tuesday morning.

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