The collapse of a deal to form a French TV giant to challenge U.S. streaming services such as Netflix knocked shares in M6 Group and TF1 lower. France’s two biggest private broadcasters gave up their merger plan on Friday citing French antitrust requirements.
M6 and TF1, like other European local broadcasters, are battling to remain competitive as global video platforms extend their domination of the market, and collaboration was considered a solution to those issues.
The breakdown in talks came as Netflix and Disney+ prepared to launch an ad-supported subscription offer for their viewers, potentially eroding the advertising market share of TF1 and M6.
Shares in Bertelsmann fell 1.3% on Monday as pressure mounts on French TV group TF1 to find a buyer for its controlling stake in M6. Italian media conglomerate Media for Europe is also seen as a potential candidate for a cross-border deal.