RTL Netherlands and Talpa Network have agreed to merge their operations, creating a much bigger commercial media group in the Netherlands. If approved by regulators, RTL will own 70 percent of the shares and Talpa holding 30 percent. The merged company would be led by RTL CEO Sven Sauve, while Talpa’s John de Mol will remain a shareholder and focus on devising new formats.
The two companies lead the commercial broadcast market in the Netherlands, operating the main TV and radio channels competing with public broadcaster NPO. Together they would have reported joint revenues of EUR 909 million in 2020, with an EBITA of EUR 84 million. They together spend over EUR 400 million per year on content. The merger is expected to create synergies of EUR 100-120 million per year, fully realized in 2025.
The merger will enable the two companies to invest more in local content, technology and data, and to better compete with global tech platforms, RTL said. "This is not only valuable for our viewers, but also for advertisers and the creative industry as a whole. We look forward to working with John de Mol and Talpa to steer this new group into a bright future," CEO Sauve said.
The transaction does not include the content units of Talpa Network, namely Talpa Concepts and Talpa Entertainment Producties. These have however cut a separate content deal with RTL Netherlands, to develop formats for linear TV channels and streaming service Videoland (part of RTL Netherlands).
The transaction, which still needs the approval of the European Commission and Dutch regulator ACM, means RTL Netherlands will not be taken over by VodafoneZiggo or DPG Media. Belgian newspaper De Tijd reported earlier that these parties had been interested in the operations.
RTL earlier struck a similar deal to merge its French business M6 with rival TF1, and it will now consider the next steps for its Belgian subsidiary. According to De Tijd, there is only one strong candidate, the combination of Rossel and DPG Media, which together reportedly bid EUR 200-250 million. Telenet was also interested but has dropped out of the running.
