Softening of European regulations could lead to merger of France’s M6 and TF1, claims Bertelsmann CEO Rabe

Thomas Rabe, the CEO of RTL Group’s parent company Bertelsmann, is looking to revive the long-mooted merger of RTL-owned network M6 and French commercial broadcaster TF1.

Thomas Rabe

Rabe believes that amalgamating the two Gallic outfits would create a “true French TV and streaming champion able to compete with the US platforms,” as the softening of European regulation opens the door for a potential M&A deal.

As reported by C21 at Series Mania in Lille last month, M6 CEO David Larramendy claimed there is still “lots of interest” in the protracted sale of M6.

The saga dates back to early 2021 when European media giant RTL Group first sought a buyer for its broadcast group, with an asking price of around €3bn (US$3.2bn). Bertelsmann approached potential bidders for its controlling 48% stake in M6 Group, including TF1 Group, Mediaset, Vivendi and Altice.

TF1 emerged as the most likely buyer, but a proposed merger collapsed in August of 2022 after intervention from the French Competition Authority. The antitrust watchdog ruled that it would only approve the deal on the condition that either the TF1 TV channel or the M6 channel were sold.

Bertelsmann subsequently put M6 back on the block but current regulations mean the broadcaster cannot now be sold before 2032. According to Larramendy, that hasn’t prevented a list of interested parties from kicking the company’s tyres with a view to future bids.

“It’s always positive that people are attracted to M6,” he told Series Mania delegates. “Is it up for sale? I don’t know, ask our shareholders, but the market needs consolidation.

“M6 cannot be sold before 2032 so the market is frozen. It’s not a good thing. Is TF1 the best buyer? It’s an interesting one. I don’t think they’re the only buyer because there’s lots of interest.”

However, recent developments have led Rabe to propose putting a “highly” synergistic deal back on the agenda.

He believes that a merger, worth a reported US$4.1 billion, could now be possible as Europe responds to Donald Trump’s trade tariffs by relaxing its attitude towards continental media groups strengthening their positions to take on the US-based major streamers.

It follows a report from the former European Central Bank chief Mario Draghi last year on EU competitiveness, which suggested regulators should relax merger rules. The new EU competition commissioner, Teresa Ribera, has now begun work to assess whether regulation is “fit for the new realities” of global competition.

Talking to the Financial Times, Rabe said: “We’ve been the victims of these rules more than once. We have tried to create European champions in media and we were blocked by the regulators, I believe for no good reason.

“Now the European Commission talks about the necessity to reform and promote European champions. Fantastic. Let’s do it.”

A spokesperson for Groupe TF1 said: “We can see putting such a project back on the table when the legal and regulatory conditions permit it.”