Bouygues proposes eleven remedies to the Competition Authority to pass the TF1-M6 merger
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They had thrown a chill on July 26 by claiming that their marriage was threatened by the Competition Authority (ADLC). Despite a severe report from the regulator’s investigation services, TF1 and M6 are continuing their work to bring their merger project to fruition. On August 12, the Bouygues group sent the ADLC the eleven “remedies” envisaged in order to make the merger of the two private television groups acceptable. These commitments were immediately sent to other players in the sector (competing channels, producers, agencies, advertisers, etc.), who have until August 25 to give their opinion.
The most sensitive subject of the operation, advertising, which had triggered the wrath of the services of the Authority. If the merger were completed, TF1 and M6 would hold a market share of 75% of small screen revenue. According to the document consulted by The world, the owner of TF1 undertakes to separate the two advertising agencies of La Une and M6. A proposal which may seem radical, but which does not satisfy the opponents of the merger. In fact, only the TF1 and M6 channels would have separate rooms, and this only in linear advertising.
In other words, each of the agencies would then have the possibility of recovering the other channels of the new group (W9, TMC, TF1 Séries Films, Gulli, etc.), as well as all the replay, targeted advertising or sponsorships. “It will be easy for TF1 to recreate a major advertising center around its channel and simply house M6 in a separate entity”, predicts an audiovisual actor. In radio, Bouygues provides for a third independent management, responsible for styling RTL, recovered in favor of the marriage, as well as the contract with the GIE of independent radios. This entity would be deleted in the event of the termination of this last partnership.
only three years
To ensure the watertightness of the structures, Bouygues proposes to appoint different managing directors for each company, negotiating ” independently “ their terms of business with advertisers, with a ban on sharing information “non-public”. And, in order to push everyone to play the game, 30% of the remuneration of the members of the executive committee would depend on their results. An opponent of the merger, however, points out that the two authorities would have the right to share the same financial management, a cut to their hermeticity.
Bouygues, which has already promised to sell TFX and 6Ter to Altice if the operation goes through, has not offered any additional sales
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