And Alain Weill yielded. Fifteen years after the founding of the group, the CEO of NextRadioTV regularly solicited by buyers from all sides, has selected Patrick Drahi. The owner of Altice, parent of Numericable, SFR, a stake in the company owning the particular news channel BFM TV continuously and RMC radio, and achieved a turnover of 195 million euros in 2014, with an EBITDA of 17%.
The operation pattern, complex, has several components. A new company 51% owned by Alain Weill and 49% by Altice will launch a takeover bid (37 euros per share) on 62% NextRadioTV not held by CEO and founder. This operation, that values NextRadioTV a little beyond 600 million euros, will be financed by the company of Patrick Drahi – “by money cash and debt,” according to Alain Weill. It therefore does not affect cash in the transaction.
Instead, it will parallel invest EUR 50 million in another company, Altice Contents, which will have a capital of 200 million and he will own 24% (the remainder will be owned by Altice). The company plans to make international acquisitions in the media sector, which should automatically increase its value – at the same time that the value of the share held by Alain Weill. CEO NextRadioTV the opportunity to go to the steering committee of Altice, with the burden of caring for any media group
Last element of the agreement. Patrick Drahi will have from in March 2019 the right to purchase the securities held by Alain Weill (and a pre-emptive right before that). The sixth fortune of France, as ranked 2015 Challenges , is called eventually to become the majority shareholder of NextRadioTV. A revolution in home BFM and RMC, which justifies its founding by the desire to internationalize and the necessary convergence of content and networks
Challenges. For several years, you receive redemption proposals for your group. Why did you finally said yes to Altice and Patrick Drahi
Alain Weill ? Altice is not a historical group of the media sector in which I should have integrate myself. It is a new entrant in the field, which approaches the newcomer that we are still. We will contribute to pluralism secteur.Je am delighted to be associated with a telecom player, because the future of the audiovisual pass by telecoms. Networks and media will converge, especially with the rise in power of mobile. We are already seeing for radio in the United States: it is heard primarily on mobile.
It’s been fifteen years that I receive solicitations from foreign or French groups, historical or not, NextRadioTV … This time he is not a sale or of a merger, but a marriage that combines two complementary know-how, one in telecoms, the other in the media. It is also a growth project, a dimension that no offer had previously received, and for which Patrick Drahi leaves me great freedom of development. We have a very strong ambition in France but also abroad. The idea is that the media division of Altice accompanies its telecoms division when it sets up a new territory are making acquisitions. I think for example in Portugal ….
You know Patrick Drahi for 20 years. The personal factor he has played in your decision?
You know, we all know each other for a long time in the media. Patrick drahi and I, we met regularly. Two months ago, he came to see me to discuss a scheme in which we would associate us. What counted was that he trusted me. I will have to develop the role of media activity Altice, I joined the steering committee, while keeping control of my group today.
I really wanted to go international with NextRadioTV but I had trouble conceiving the project alone. The announce in association with a leading telecom seemed the best track.
We talk for a long time the convergence between media and telecommunications, content and pipes. Orange has tried it in 2008 before turning back … Something has changed?
Some tried in France, but this was perhaps not the right timing nor the right strategy. This convergence is already a reality in the United States, with John Malone ( chairman of Liberty Media and Liberty Global and American model of Patrick Drahi, ed ) and the British operator BT has engaged in this path. I think Patrick Drahi, with its extensive experience of the cable will be the one who will make the connection between networks, fixed or mobile, and media, we are talking about a long time.
Apart mobile, industrial challenge this merger, it is the video?
Yes, with the development of optical fiber and mobile broadband, people will become more in most consumer video. This will explode. It is important that those controlling networks are capable of providing increasingly these types of content. When talking about convergence, patrick drahi thinks first broadcasting. Altice Contents The subsidiary will mainly develop in the direction of audiovisual content, even if print media assets Altice Media Group ( L’Express and Liberation, notably ed ), personal property patrick drahi and not the company, are intended to reach one day Altice Contents.
With a 51% stake in the new company styling NextRadioTV, you remain the majority. But Patrick Drahi has a right to purchase from March 2019. Then you may lose control of the group you founded in 2000 …
This right purchase is an option. But no longer be a majority is not taboo for me, especially if the group I lead is ten times bigger. The association with Altice gives us significant financial resources. I prefer to be a minority in a large international group, rather than a majority in a French group.
Your personal future is within the Altice group?
You can imagine. Today I have one foot in the Altice Group. I may be two feet in the future.
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