Announced in May 2021, the proposed merger between the TF1 and M6 groups aims to create a major French media capable of providing a diversified offer on multiple media and resisting the pressure of streaming giants, mainly American.
If the synergies generated by the merger can provide greater means of action, bringing the two entities together is not obvious and can pose competitive problems.
From the start, its promoters noted that it was necessary to wait for the green light from the various regulators before validation which would not arrive before the end of 2022 at best. Since then, negotiations have been initiated to stick to regulatory requirements, in particular by selling DTT channels to Altice.
But the consolidation is encountering serious obstacles, to the point of risking a collapse. During the presentation of the quarterly results of M6, the chairman of the executive board Nicolas de Tavernost was rather pessimistic.
Unfavorable report from the Authority, but no decision yet
The Competition Authority has in fact noted in a report significant competition concerns concerning publicity and the proposed remedies would risk taking away all relevance of the project, which would then be abandoned.
The Authority has not yet taken a final decision and the two groups still hope to find a favorable outcome to create this famous French media giant.
TF1 and M6 have however warned that they are not ready to merge at any price. Too many constraints and obstacles could force them to give up. At the same time, they call for a rethinking of the television regulatory framework in the light of developments in the Internet and video streaming, also taking into account advertising on digital channels.
In this respect, the announcement by Netflix of a new low-cost offer integrating advertising should make us think about the evolution of the regulations to give the new entity the ability to play on equal terms.
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