Tuesday, December 13, 2016

M6 is going to buy the RTL, its sister company in the radio – Echoes

RTL had announced his move to Neuilly, just in front of the premises of M6. The two media companies will no longer be just neighbors : the television group will buy the one radio in France (RTL, RTL2 and Fun Radio, most Internet sites and corporations).

The two audiovisual groups were until then brothers, with a common shareholder : RTL Group (owned 75% by the German Bertelsmann), which held that 48.3 % of M6 (but 34 % of the voting rights), and the entire RTL in France. M6 is thus entered into exclusive negotiations with its reference shareholder.

The transaction will be the biggest ever carried out by M6. It will be at a price of 216 million euros, excluding cash, and will be funded 100 % by debt. 9 times Ebita (which roughly corresponds to the current operating income), ” that which is reasonable in relation to the previous transactions in the media “, points out Alexander Koller, an analyst at Gilbert Dupont.

This project, ” initiated by M6 “, allows to associate the second group of private television in France and the first private group of radio, according to a press release of M6. Together, they represent a combined sales of a little over 1.4 billion euros (1.25 billion euros for M6 in 2015, $ 168 million for the pôle radio RTL in france).

Of the governed municipalities

Several synergies and reconciliations will be made : first between the teams – with therefore governed by the common television, radio and digital. the ” We were the only French player not to be cross-media, explains Jérôme Lefebure member of the executive board responsible for the finance and business support M6 . We will be able to respond to requests for more and more large advertisers, in a market that is more technical. “

Then, between activities and digital services, with an action of ” co-ordinated two teams “, indicates the release of M6. There will also be ” innovations in content “ in which information, entertainment and music : it might as well be a sharing of talent, or programs, ” respecting the identity of each of the brands “, specifies Jérôme Lefébure.

Finally, the agreement provides for a sharing of competences between the support functions. the ” the M6 is known to have a rigorous management of costs and could make their mark on the whole of the new group “, points out Alexander Koller.

” This will be a very good operation for M6. It does not degrade the profitability of the group. On the contrary, it may improve it, post-synergies “, says Jean-Baptiste Sergeant, analyst at Mainfirst. And this should also boost the radio : the M6 group aims for an Ebita of € 40 million for his new pole radio to horizon 2020, against $ 24 million in 2015. Jérôme Lefébure ensures that there will be no social plan.

beyond the consultation of staff representative bodies, the transaction shall be subject to approval of the higher Council for the audiovisual sector and the government of luxembourg (RTL Group, is based in Luxembourg). There is no scheduled date but, a priori, the operation could be completed next summer.

Marina Alcaraz, Les Echos


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